Finance & economics | Worst-keg scenario

Could war in the Gulf push oil to $100 a barrel?

Missiles are flying over a region that supplies a third of the world’s crude

Photograph: Getty Images

EVER SINCE Hamas’s attacks on Israel a year ago, the biggest fear in oil markets has been that tensions would escalate into a full-blown regional war pitting Israel against Iran, the world’s seventh-largest producer of crude. Until recently both countries seemed keen to avoid it. That explains why, despite war in Gaza and Houthis firing missiles in the Red Sea, initial jitters on oil markets after October 7th last year soon gave way to the low and stable prices that have prevailed for much of this year.

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