Oil prices are likely to remain below $ 80 per barrel despite the escalation of the Israel -Iran conflict, Research Society Rystad Energy said Monday, as Iran and Israel continue to exchange blows with the escalation now.

“Based on our previous simulations on disorders, we see oil prices limited below $ 80 per barrel,” said Mukesh Sahdev, head of Rystad Energy’s merchandise purchases, in a market update that carries the Africa Oil+Gas Report.

The conflict seems to be limited and the United States could possibly play a central role, according to Sahdev.

The straits of the hormoz

The worst fear of the market is a possible closure of the strait of the Ormuz, the most critical crude flow lane in the world, from which more than 20 million crude barrels pass daily -corresponding to one fifth of world daily oil consumption.

Although stopping the flows in the straits of the hormone could be devastating and would launch oil prices and will add further tensions, it is an unlikely scenario for many observers and analysts, including those of Rystad Energy.

“An exclusion remains the main danger that could push markets to uncharted territory,” said Janiv Shah of Rystad Energy.

However, “given their interest in keeping prices closer to $ 50, the US could play a stabilizing role,” Shah added.

“We maintain our view that this is likely to remain a short -lived conflict, as further escalation is in danger of escaping the control of key stakeholders,” Shan said.

Following the jump of oil prices on Friday after the start of Israeli bumps in Iran, oil on Monday, there was a decline, with slow Brend negotiating at $ 72.78 a barrel.