Oil prices impacted by Iran's attack on Israel over the weekend

In anticipation of Iranian action, prices had already increased, with Brent crude almost reaching a six-month high last week.

Markets, according to analysts, would be watching to see how the violence may impact international supply chains.

Because so many nations rely significantly on oil for the production of fuels like petrol and diesel, changes in the price of this commodity may have an impact on whole continents. In recent years, there has been a significant global increase in the cost of living, mostly due to rising fuel and energy costs.

Oil prices shot up to $120 a barrel in 2022 due to supply shortage worries as Western countries put sanctions on Russia, one of the world's largest oil suppliers. As a result of firms raising their prices to offset increased expenses, the increase not only resulted in higher prices at the pump but also in several other commodities.

In the next days and weeks, analysts predicted that Israel's response to the strike would be crucial for world markets.

Gold prices increased somewhat and are currently trading close to record highs of $2,400 per ounce, while oil prices have slightly declined.

Gold surged substantially ahead of the weekend and is frequently regarded as a safe investment in difficult times.

Iran is the third-largest member of the Opec oil producers' cartel and the seventh-largest oil producer in the world, according to the US Energy Information Administration.

Analysts predict that whether or not shipping via the Strait of Hormuz will be impacted will be a major factor in oil prices moving forward.

The Strait, which separates Iran and Oman, is an essential shipping route since it is home to 20% of the world's oil supply.

The majority of oil exported by Opec members Saudi Arabia, Iran, the United Arab Emirates, Kuwait, and Iraq passes via the Strait.

(Sources: investing.com, reuters.com)