The Al-Aqsa Flood operation: Impact on oil and gas prices

Whenever there is tension or a war anywhere in the world, all eyes turn to oil and gas prices.

And what if the "heart of the event" is happening in the Middle East, which holds around a third of the gas reserves and is responsible for about a third of global oil exports? 

The Al-Aqsa Flood operations between Hamas and Israel have added to the turmoil and uncertainties in the markets. 

Gas prices in Europe have risen by more than 30 percent in the past week and a half, and one of the main reasons is the closure of the Tamar field in Israel.

This field does not just secure about half of Israel's production; it also sends about a third of its output to Egypt and, from there, to Turkey and Europe. 

This one-third has dropped by 20 percent due to the Tamar shutdown, according to Bloomberg. Exports to Europe are now at risk, especially as the Leviathan field, the other main source, might also be closed. 

This comes at a time when the "old continent" is still searching for alternatives to cheap Russian gas (which it lost access to after the Russian-Ukrainian war) on the verge of winter.

Regarding oil, the price per barrel has risen to about $4. However, according to analysts, this $4 can quickly turn into $40 if the war escalates, especially if it involves Iran. Why?

Firstly, Tehran controls the Strait of Hormuz, through which approximately 20 percent of the world's oil needs pass alone, and any war may push Iran to close the strait.

Secondly, if the United States decides to tighten sanctions on Tehran due to the tensions, this means Iran's oil exports will decrease, leading to less supply and higher prices.

This is without forgetting that OPEC plus countries, including Saudi Arabia and Russia, are determined to maintain the decision to reduce their oil production. 

It is in their interest to maintain high prices to secure more revenue. This decision seems to be holding, according to the Russian president.