Following the death of Iran’s president, oil prices have climbed, signaling political uncertainty in the Middle East.
Amid the death of Iran’s president in a helicopter crash, Saudi Arabia’s crown prince has canceled his trip to Japan, citing health issues. Indicating a price hike, Reuters reported that Brent gained 41 cents, or 0.5%, to $84.39 a barrel, after rising to $84.43 earlier, its highest since May 10. Meanwhile, U.S. West Texas Intermediate (WTI) crude increased by 23 cents to $80.29 a barrel, after hitting $80.35 earlier, the highest since May 1. President of Iran, Ebrahim Raisi, was long seen as a potential successor to Supreme Leader Ayatollah Ali Khamenei. However, following his demise, the political landscape of Iran has been shaken.
The crown prince of Saudi Arabia, Mohammed bin Salman, postponed his visit to Japan scheduled to commence from today, following his father King Salman’s health issues. The state news agency of Saudi Arabia reported that the 88-year-old King Salman will undergo treatment for lung inflammation.
Meanwhile, the tense situation between Iran and Israel has led to a wobble in the global oil market. The significant rise in uncertainty in the Middle East region might have global effects. An increase in oil prices could lead to inflation and affect already struggling economies like Sri Lanka. Sri Lanka is gradually recovering from the economic collapse following negotiations with the International Monetary Fund (IMF). A hike in oil prices could exacerbate Sri Lanka’s inflation. The country is still struggling and mainly depending on the remittances received from migrant workers.
