As Iran and Israel trade strikes targeting nuclear facilities and energy sites, an oil expert says crude prices could rally by US$5 a barrel and possibly reach $80.

Flare-ups in the Middle East have a predictable impact on the price of oil - causing it to spike as investors grow fearful about supply constraints.

Shapiro served as Deputy Assistant Secretary of Defense for the Middle East until January—charged with, among other things, considering scenarios in which tensions between Israel and Iran escalated into all-out war and preparing U.

Iran remains in economic crisis due to international sanctions over its nuclear program, which have limited its oil exports. The Iranian rial remains weak and inflation is stubbornly high at around 40%. Any further disruption to oil exports would ripple globally.

Earlier on monday, the IDF said it had identified missiles fired from Iran towards Israel. Amid the rising conflict, an expert has predicted the impact on the naira.

The U.S. economy’s reliance on overseas oil is very much less a factor today than 10 or 15 years ago, says Nomura economist David Seif.

How could the Israel-Iran attacks impact the global economy?

An exchange of strikes on refineries and gas facilities was limited but raised the risks to an industry with broad economic impacts.