There was a mild reaction in the markets oil after the death of its leader HezbollahHassan Nasrallah, after an Israeli airstrike in Beirut.

Over the weekend, Israel’s armed forces said Nasrallah, who led the group for more than 30 years, was killed on Friday during a “targeted attack” on the group’s headquarters in Beirut.

Hezbollah, which has been designated a terrorist organization by many countries, including the US and the UK, is known for its violent opposition to Israel and its resistance to Western influence in the Middle East, according to the director of National Intelligence of the USA and the London Convention.

The incident follows several months of conflict and had raised concerns of a wider conflict involving Iran. The IDF described Nasrallah as the group’s “central decision maker” and “strategic leader.”

However, oil markets did not see a significant uptick. The global benchmark Brent added 1.56% to $73.10 a barrel, while US contracts West Texas Intermediate was trading 1.09% higher at $68.19 a barrel.

While hostilities across the Middle East have intensified, there has been no disruption to oil supply, noted Andy Lipow, president of Lipow Oil Associates, according to the CNBC.

“The oil market does not expect an all-out war between Iran and Israel that would affect supply,” he said.

Since the Hamas-Israel conflict that began last year, disruptions to the oil market have been limited. The oil market also remains under pressure as increased production from the US, Canada and Guyana fill the supply picture, in addition to stagnant Chinese demand, while OPEC+ has delayed restoring its output cuts, Liupou said .

“Eliminating Hezbollah’s leadership could trigger a backlash that ends up affecting oil supplies, but given that it did not directly affect [τις προμήθειες πετρελαίου] … the oil market likely won’t price in much additional risk for now,” said Josh Young, CIO of Bison Interests.

It can reach 100 dollars a barrel

However, both experts noted that a rapid escalation of the conflict could push crude oil prices to $100 a barrel.

The biggest risk to the oil market is the closure of the Straits of Hormuz, Lipow said. Although unlikely, oil prices would jump $30 a barrel if that happened, he added.

“If events spiral rapidly, any substantial disruption to Iranian oil supplies or oil exports through the Strait of Hormuz could send oil prices well above $100 a barrel,” Yang said.

The strait, between Oman and Iran, is a vital channel through which about a fifth of the world’s oil production flows every day, according to the US Energy Information Administration. It is a strategically important waterway that connects crude oil producers in the Middle East to key markets around the world.