16:30 - 8.01.2020

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January 8, Fineko/abc.az. Tensions between the U.S. and Iran directly affect the oil market, stated expert economist Vugar Bayramov, commenting on oil price forecasts.

According to Bayramov, as the Middle East is the main source of global oil supply, any tension in this region can lead to a decrease in oil supply, which causes dissatisfaction of investors.

And this, as a consequence, directly affects the growth of prices and, in particular, the price of oil on the world market: "The growth of prices has already been observed. The death of General Suleimani as a result of a US missile strike on an airport in Iraq led to an increase in world oil prices by 4%. Although there is some stabilization of prices in the coming days, the tension still persists. And this directly affects prices. It is assumed that if the US-Iran relationships in the next stage lead to war in the Middle East, it could lead to an increase in world oil prices to $75 in the shortest possible time.

So actually there are two scenarios, and one of them is if tensions trigger war, it will lead to an increase in oil prices, as difficulties will appear both in the supply of oil and the production of oil on the world market and this will certainly lead to an increase in prices."