XOM - Iran's Involvement In Israel-Hamas Conflict Is Key For The Future Of US Inflation | Benzinga
The outbreak of war in the Middle East is threatening to hamper the Fed's efforts to control inflation.
A Thursday visit from Secretary of State Antony Blinken to Israel was confirmation of unconditional support from the U.S. for Israel in its war against Palestinian terrorist organization Hamas.
Israel’s military reported on Thursday afternoon that over 1,200 people, including at least 27 Americans, have been killed by Hamas’ attacks, with around 2,800 individuals injured. In response to these attacks, Israeli counterstrikes in Gaza have resulted in the deaths of approximately 1,537 individuals, according to the Gaza Ministry of Health, CBS News reported.
On Thursday morning, International Monetary Fund managing director Kristalina Georgieva expressed concern over how the conflict could affect global oil markets, which are liable to be disrupted by war in the Middle East, where roughly a third of the global oil output is produced.
While the specific area where the conflict is located is not a significant oil-producing region, major disruptions in the global oil markets could come if further conflict arises between the U.S. and Iran, a long-time backer of Hamas operations against Israel.
Earlier this week the Iranian government denied having any relationship with the Hamas attacks, as Supreme Leader Ayatollah Ali Khamenei said "We defend Palestine, we defend the fights." This denial is contradicted by reports that Iran had a direct role in training Hamas for the latest attack on Israeli civilians, according to The Wall Street Journal.
While Congress is preparing a $2-billion aid package for Israel, several prominent U.S. politicians denounced Iran’s participation in the massacre, proposing a double-down on oil sanctions.
Yet the already fragile relationship between the U.S. and Iran, the world’s eight largest oil producers, could still have an impact ...