US-Israeli attacks on Iran could push oil prices above US$100: expert
Speaking to ANTARA in Jakarta on Sunday, Faisal said oil currently trades around US$70 per barrel. Continued conflict could push prices to US$80 per barrel.
“If oil supply through the Strait of Hormuz is disrupted, prices could surpass US$100 per barrel,” he said, adding that the strait handles about 20 percent of global oil trade.
Disruption in the region could significantly boost crude prices. “A US$100 per barrel price would enter a high, record zone,” Faisal said, noting the last surge occurred at the start of the Russia-Ukraine war.
He warned that the Iran-Israel conflict could escalate regionally with US involvement. Support from China and other countries backing Iran may prolong the crisis.
“There’s a possibility this war could last longer than expected,” Faisal said, emphasizing the potential for extended market instability.
He added that rising global oil prices would directly affect domestic fuel costs. Non-subsidized fuels are likely to increase in line with international markets.
More concerning is the potential impact on subsidized fuels such as Pertalite and Solar, widely used by middle- and lower-income Indonesians.
“Price increases could drive inflation and reduce overall purchasing power,” Faisal said.
The United States and Israel launched a series of strikes on Iranian targets Saturday, including Tehran, causing significant damage and civilian casualties.
In retaliation, Iran fired missiles at Israel and US military facilities across the Middle East.
Iranian state media reported that Supreme Leader Ayatollah Ali Khamenei was killed in the combined US-Israeli strikes.
The Islamic Revolutionary Guard Corps (IRGC) announced Saturday the launch of “the most brutal offensive in Iran’s military history” following confirmation of Khamenei’s death.
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Translator: Shofi A, Rahmad Nasution