Barclays predicts Brent crude oil will reach $100 per barrel following the US and Israel's strike on Iran

Barclays increased its Brent crude oil futures forecast to around $100 per barrel, up from $80.00 on Friday, following the bombing of several Iranian sites by Israel and the United States.

Oil markets may have to confront their worst fears Monday. The bank stated in a report that Brent (per barrel) could reach $100 as the market grapples with the potential of a supply disruption in light of the'spiraling Middle East security situation. On Saturday, the United States and Israel launched an attack on Iran, calling for its overthrow and targeting top leaders. Iran responded with missiles that were fired at Israel and Gulf neighboring countries.

The price of oil rose by about 2% Friday as traders prepared for a possible disruption in supply, since the nuclear talks between Iran and the U.S. have not yet reached a conclusion. Brent settled at $72.48 per barrel.

A fifth of

Oil consumed worldwide passes through the

Strait of Hormuz

There are no?disruptions? between Oman & Iran.

Area a major threat to global oil supply

Iran, along with fellow members of the Organization of Petroleum Exporting countries Saudi Arabia, Kuwait, Iraq, and the United Arab Emirates export their crude oil via this strait, mostly to Asia.

According to U.S. Energy Information Administration, Iran will be the third-largest crude oil producer in OPEC by 2025 behind Saudi Arabia and Iraq. Reporting by Scott DiSavino, Editing by Rod Nickel

(source: Reuters)