Iraq Oil Industry on Edge as Israel-Iran Conflict Escalates
With key oil facilities at risk and the potential for supply disruptions, the global oil market is bracing for the impact of escalating tensions between Israel and Iran, as the situation in Iraq and the broader Middle East continues to evolve, affecting oil prices and industry operations.
Foreign oil personnel, including British experts, have left Iraq due to the escalating Israel-Iran conflict, with some unable to return because of complex border procedures, yet they continue to receive full salaries, highlighting the industry's concerns about the situation.
The conflict between Israel and Iran has put the oil industry on high alert, with analysts warning that the hostilities could disrupt oil supply from the Middle East, a region crucial for global oil production. Key targets for potential attacks include Iran's Kharg Island, a major crude terminal, and oil facilities in neighboring Iraq, which could significantly impact the global oil market.
The escalating tensions have already started to affect oil prices, with estimates suggesting that Brent crude could reach $90 a barrel if Iranian supply is disrupted. This has led to foreign oil firms, including BP, Total, and ENI, evacuating some of their foreign staff from southern Iraq as a precautionary measure. The Basra Oil Company cited the "security situation" in the region as the reason for these temporary evacuations, which do not currently affect operations.
As the situation continues to unfold, the oil industry remains vigilant, aware that any disruption in the Middle East could have far-reaching consequences for global oil supplies and prices. The temporary evacuations of foreign staff are a testament to the precautionary measures being taken to ensure safety, while the continuation of full salaries for absent personnel underscores the complexity and uncertainty of the current situation.