Lebanon and Gaza crises unlikely to impact oil prices, say experts

Shafaq News/ Ongoing conflicts in Lebanon and Gaza are not expected to affect global oil prices, according to experts, citing political rather than economic factors behind recent market movements.

Iraqi lawmaker Jamal Coujar, a member of Iraq’s parliamentary finance committee, told Shafaq News that oil prices are more influenced by broader international issues than by the current situations in Lebanon or Gaza. "Neither Lebanon nor Gaza are oil-producing or industrial countries, so their events do not have an impact on oil prices," he said, adding that the war in Ukraine, particularly if countries like Iran or Iraq become involved, would be a far more significant factor.

Coujar also pointed to a global economic recession as another key factor in shaping oil prices.

Oil expert Hamza Al-Jawahiri, a prominent oil expert, echoed this sentiment, "The drop in oil prices is more politically driven than economic," he told Shafaq News.

“Despite factors such as the conflict in Gaza and Lebanon, as well as a hurricane affecting production in the US Gulf of Mexico, oil prices have not spiked. The only plausible explanation is that political reasons are behind the lack of price increases."

Oil markets have seen weekly losses, with Brent crude falling by 3.3% and West Texas Intermediate dropping by 3.9%, amid investor concerns over potential production increases from Libya and the OPEC+ alliance.