Written by the World's Best Investment Manager and Financial Market's Journalist, Parisa Hafezi and Andrew Mills
Iran has sent a strong message to Gulf Arab states, stating that it would be "unacceptable" if they permitted the use of their airspace or military bases against Iran. The warning comes amid concerns over possible Israeli retaliation for a recent Iranian missile attack.
During discussions between Iran and Gulf Arab capitals, Iran emphasized the need for regional unity against Israel and the importance of maintaining stability. Any assistance to Israel, such as allowing the use of a regional country's airspace for actions against Iran, was deemed unacceptable by Tehran.
U.S. President Joe Biden is expected to discuss potential plans to strike Iran with Israeli Prime Minister Benjamin Netanyahu. Washington aims to weigh in on the appropriateness of the response to any escalation in the region.
The Iranian official clarified that Tehran did not engage in discussions regarding Gulf Arab oil producers increasing output in the event of disruptions to Iranian production. OPEC, led by Saudi Arabia, has sufficient spare oil capacity to compensate for any loss of Iranian supply resulting from an Israeli retaliation.
It is important for individuals to understand the implications of these geopolitical tensions on the global oil market. Any military conflict in the region could lead to disruptions in oil supply, impacting prices worldwide. Investors should closely monitor the situation and adjust their portfolios accordingly to mitigate risks associated with heightened geopolitical tensions.