The keys: the Gulf crisis threatens to escalate as soon as it has been voted in the US and Israel
Oil reserves cushion the blow, but the prolongation of the conflict makes supply more expensive and accumulates unease among investors
The Gulf crisis is on the brink of escalating as elections approach in the United States and Israel, according to market analysts. While countries in the region have found alternatives to transport their oil, the cost of doing so has risen, and there is less certainty in the supply chain. As the half-term legislative elections in the United States and those in Israel approach, there is a greater chance that both Donald Trump and Benjamin Netanyahu may again aggressively target Iran.
Trump favors waiting until after the midterm elections on November 3rd to avoid further price increases, while Netanyahu would prefer to act before his own election on November 2nd. The conflict could thus worsen, but the mere lack of a clear solution is already causing growing unease among investors. For now, crude oil and diesel reserves are helping to mitigate the damage.
However, the chronicling of conflicts, as was evident in the case of Ukraine, harms the economy and citizens alike, whether they are voters or not.
Written by urgent.news from El Pais Economia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
