Tel Aviv: The possibility of a short-term increase in oil prices has risen amidst geopolitical tensions, as stated in an assessment by the rating agency SandP Global Ratings. The agency’s evaluation focuses on the potential effects of the escalating conflict between Israel and Iran on the energy market, APA-Economics reports.

According to Azeri-Press News Agency, SandP Global Ratings emphasized that while oil prices might see a short-term boost, this does not automatically translate into economic benefits for the regional countries. The agency outlined key conditions necessary for the price increase to have a positive economic impact: uninterrupted oil production, stable global demand, and the continued openness of crucial energy and trade routes, particularly the Strait of Hormuz and Bab al-Mandeb.

SandP cautioned that any disruption to these conditions could render the price increase unsustainable and potentially lead to financial losses for some oil-exporting nations. This situation is particularly concerning for countries heavily reliant on energy exports. Despite the current geopolitical risks, SandP predicts that oil prices will stabilize in the medium to long term, noting that the present market scenario, where supply outstrips demand, remains unchanged.