BlackMask Breaking News

The current war between Israel and the Palestinian political and militant group Hamas originated in the murder of over 1,400 of the former’s civilians by the latter on and around 7 October, it has quickly begun to revert into the long-running conflict over the statehood of Israel and Palestine. This brings with it the potential to draw into the war several other Arab states in the region who support Palestine’s right for a fully independent state. It also means that Iran – a Persian, not an Arabic, state, but one which does is committed to erasing the state of Israel – has everything to gain by instigating a widening out of the present war between Israel and Hama the Islamic Republic of Iran, which came into existence in 1979. With the removal of Israel as a state being one of its core objectives, alongside the destruction of all U.S. influence in the Middle East, several highly-placed security sources in both the U.S. and the European Union (E.U.), exclusively spoke to by OilPrice.com last week, do not believe that Hamas would have acted against Israel on 7 October without – at minimum – assurances from Iran that its actions were not opposed in Tehran. “Israel is regarded as an abhorrence by Iran – not just because of its existence as a state, but also because it is seen as the primary tool by which the U.S. seeks to extend its influence across the Islamic world of the Middle East, so [Iran] it has everything to gain by manipulating this war [between Israel and Hamas] into something much bigger,” a senior source in the E.U.’s security complex told

Although there is a flurry of diplomatic activity taking place to avert the Israel-Hamas War widening out, on 16 October Iran’s Foreign Minister, Hossein Amir Abdollahian, warned that its regional network of militias would open “multiple fronts” against Israel if its attacks continued to kill civilians in Gaza. It seems highly likely that the first new front would be a full activation of Hezbollah in Lebanon, to Israel’s direct north; a 100,000-strong very well-equipped fighting force funded and trained by Iran’s Islamic Revolutionary Guards Corps (IRGC) that dwarfs the fighting capabilities of Hamas in all respects. Israel has already stated that its mission is to “annihilate Hamas” and that to do so it will launch ground operations into Palestine for as long as it takes to do so. Additionally, over the weekend, Israel’s Minister of Economy, Nir Barkat, said that if Hezbollah fully joins the war then Israel would “cut off the head of the snake” and launch a military attack against Iran. A third front could also be opened by Iran, using its own IRGC and proxy militant forces stationed in Syria, to Israel’s northeast.

The potential for oil and gas prices to spike is considerable if the conflict does indeed widen out. Reductions in supply from any of the major OPEC suppliers – let alone all of them at once, as might be the case – would be extremely difficult to compensate for, although there are plans in place by the West to attempt to do so. Emergency gas supplies from Qatar appear likely to continue under most circumstances, which would alleviate some short-term price pain in the West, as they did after Russia invaded Ukraine in 2022. Plans are also in place to extend the easing of sanctions on Venezuela seen on 18 October, according to the E.U. source, with the country’s crude production averaging around 770,000 bpd in September. Additionally, the International Energy Agency (IEA) said on 12 October that it is “ready to act” if the Israel-Hamas War escalated to hit oil supplies in the region. As has been seen before in times of dramatic oil price rises, the agency can coordinate the release of emergency oil stocks with each IEA member country. Each is obliged to hold oil stocks equivalent to at least 90 days of net oil imports and to be ready to respond to severe supply disruptions affecting the global oil market. This said, OPEC+ controls

Americans are falling behind on their auto loans at the highest rate in nearly three decades. With interest rate hikes making newer loans more expensive, millions of car owners are struggling to afford their payments. It’s a clear indication of distress at a time when the economy is sending mixed signals, particularly about the health of consumer spending.

The percent of subprime auto borrowers at least 60 days past due on their loans rose to 6.11% in September, the highest in data going back to 1994, according to Fitch Ratings.

In April that figure slipped from a previous high of 5.93% in January. But after burning through tax returns, contending with a shakier job market and grappling with still-elevated inflation, more car owners have become delinquent. Behind the surge is both higher car prices and borrowing costs. And with the Federal Reserve indicating it plans to keep rates higher for longer, the problem is likely to persist, especially as millions of Americans recently started paying their federal student loans again. “The subprime borrower is getting squeezed,” said Margaret Rowe, senior director with the asset-backed securities group at Fitch. “They can often be a first line of where we start to see the negative effects of macroeconomic headwinds.” Having access to a car is a necessity for millions living in areas without reliable transportation. Yet, prices for both used and new vehicles are historically high, declining only slightly from peaks during the pandemic, which has priced out many low-income workers who often need a car to get to work. For those with the best credit scores, interest rates are about 5.07% for a new car and 7.09% for a used vehicle on average, according to Bankrate. And for those with the worst credit, rates are about 14.18% and 21.38% for new and used cars, respectively. As payment delinquencies rise, repossessions are expected to increase accordingly. Cox Automotive estimates that 1.5 million vehicles will be seized this year, up from 1.2 million last year, although that’s still below pre-pandemic levels. NN: buying a plastic and chrome pick up truck for 50K financing it at 14% for 7 years… how do you think that will end up.

At the beginning of October, Saudi Arabia affirmed it would keep its voluntary oil production cut of 1 million barrels per day (bpd) until the end of the year and was in talks with the United States, which was brokering a deal on the normalization of Saudi-Israel relations.

But the Hamas attack on Israel on October 7 and the subsequent Israeli retaliation targeting Gaza upended, once again, the geopolitical landscape in the Middle East—the world’s top crude oil exporting region where the biggest oil transit choke point is located. Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman, is the wild card in the Middle East’s latest conflict, Reuters’ George Hay wrote in a commentary this week.

The United States Navy warship USS Carney, which is operating in the Middle East region, intercepted several missiles and drones fired from Yemen, Pentagon’s press secretary Pat Ryder said during a press briefing on Thursday. According to the official, the missile and drones were launched by Houthi militants. He added that it is still unclear what the projectiles were targeting, but underlined that the missiles were “heading north along the Red Sea, potentially towards targets in Israel.” Ryder also confirmed that several drones were launched toward the US bases in Syria and Iraq on October 17 and 18.

Drone Attacks Syrian Gas Field as Israel Conflict Escalates

In reports unconfirmed by the U.S. military, Syrian opposition figures claim that a possible Iran-backed group in Syria launched a drone attack on an oil facility and a U.S. military base in the country’s eastern region, as the Hamas-Israel conflict escalates. While no casualties were reported, and details remain sparse, Europe-based Syrian opposition activist Omar Abu Layla has said that three explosive-laden drones hit the Conoco gas field in Deir el-Zour province on the border with Iraq, the Associated Press reports.  The Syrian activist report was confirmed by the UK-based Syrian Observatory for Human Rights, in terms of the Conoco gas field strikes.  Syria has the potential to become a major renewed conflict flashpoint as Iran threatens to rally the militias it backs in proxy venues.  The Syria drone strikes come after a 24-hour run of drone attacks starting on Tuesday and targeting U.S. bases in Iraq following the Gaza hospital explosion, for which blame is still being apportioned and denied. In western Iraq, two drones hit the Asad airbase in Anbar province, which houses U.S. troops, while another drone targeted a base in northern Iraq, the Associated Press reported, citing U.S. Central Command. Damage was limited, with U.S. forces saying they had intercepted and destroyed two and damaged the third. Minor injuries were reported at the Asad airbase.

Israel says it’s in talks with SpaceX on setting up Starlink internet services to bolster its wartime communications, ahead of its expected ground invasion in the Gaza Strip. The announcement comes as Israel goes to war with Hamas in Gaza, following a deadly cross-border invasion on Oct. 7 that killed more than 1,400 Israelis, mostly civilians. The Israeli army has responded with heavy airstrikes in Gaza, which have killed more than 2,800 Palestinians, and stopped fuel, water and electricity supply into the Hamas-run Strip while amassing hundreds of thousands of troops along the front lines. SpaceX didn’t immediately respond to a request for comment. In a statement on Tuesday, Israel’s Communications Ministry said the move would ensure towns on the frontlines would have continuous internet service. It will be the first time Israel has relied on Starlink, which will serve as a backup in case other systems are disrupted, a spokesperson for the ministry added. The Israeli ministry said it is also considering disconnecting the internet and phone services it provides to Gaza. It also confirmed it was working to shut down the Israel offices of Qatari state-owned news network Al-Jazeera, “which is used for Hamas propaganda, incitement and harm to national security during wartime.” NN: Your internet will be going down at some point. Starlink is bullet proof. Its a mesh system free of ground based infrastructure. And it will soon link up with your cell phone. Nothing to do if you have an account. Which i want to give you. Attack the internet ground system in the US and you bring the economy to its knees… They can for sure do it anytime they want.