WSJ: Saudi Arabia fears oil price will rise to $180

In Saudi Arabia, there is a fear that as the Iran war drags on, the price of oil will rise to more than 180 dollars per barrel, The Wall Street Journal raportoi. According to the oil authorities’ estimate, a price increase is possible if the disturbances continue until the end of April.

Saudi Arabian authorities are worried about the development, even though the country is one of the world’s largest oil producers.

The Wall Street Journal estimates that high prices could push consumers to reduce their oil consumption and the situation could trigger a recession, which would also weaken demand.

Attacks on energy targets in the Middle East this week have pushed up oil prices. Both Iran and Israel have struck at the Middle East’s oil infrastructure.

The strikes have pushed Brent crude to a high of $118 a barrel before prices eased on Thursday. On Friday morning, the price of Brent crude oil was around $102 per barrel.

Israel announced on Thursday that it is suspending attacks on Iran’s energy infrastructure. According to Bloomberg, the reason for stopping the attacks was the US president Donald Trump’s criticism of Israel’s actions that raised the price of energy.