The possibility of a short-term increase in oil prices has increased against the backdrop of geopolitical risks, this was stated in the assessment of the rating agency S&P Global Ratings regarding the possible effects of the increased tension between Israel and Iran on the energy market, APA-Economics reports.
It was noted that this increase does not mean automatic economic benefits for the countries of the region.
According to the agency, the main conditions for the increase in oil prices to have a positive economic impact on the region must be met: "For this, there should be no interruption in oil production, global demand should remain stable, and key energy and trade routes - in particular the Strait of Hormuz and Bab al-Mandeb - should remain open."
S&P warns that if these conditions are violated, not only will the price increase be unsustainable, but even losses in financial revenues for some exporting countries are possible. These risks are of particular importance for countries with a strong dependence on energy exports.
At the same time, it is noted that S&P predicts that prices will stabilize in the medium and long term, given that the current situation in the oil market, where supply exceeds demand, continues.
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