US attacks on Iran promise to translate into higher oil prices

Following the US attacks on Iran's nuclear facilities, energy experts and analysts expect oil prices to rise this Sunday and become more pronounced when global markets reopen, further complicating the task of central banks in their attempt to curb inflation.

Energy analysts are pricing in higher crude oil prices in almost all scenarios now, even in the case of a peace deal. That's because a deal might not "extinguish the smoldering embers that could lead to future flare-ups, and perhaps an oil risk premium that lasts longer than those of the recent past," Washington-based research firm ClearView Energy Partners LLC told Bloomberg.

Of course, there's also the other scenario, with Iran following through on its threats of retaliation. In that case, ClearView posits, traders could finally "price in escalatory paths that previously seemed implausible."

Without diplomatic concessions from Tehran, Brent crude futures, the global benchmark, could open tomorrow night "significantly higher" than Friday's close of $77.01 per barrel, the research group says.

Stock market investors weren't exactly scared by the US attack on Iran. Kuwait's main stock index fell 0.5%, while Oman's stock index was little changed at the opening bell.

While oil will be the main focus of energy when markets open this week, gas traders will be keeping an eye on the Leviathan field in Israel. The project, key to supplying Egypt, was shut down on June 13 as a security measure following Israel's attacks on Iran.

As the conflict between Israel and Iran continues, concerns are growing about disruption to the strategically vital Strait of Hormuz

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