Oil (BZ=F, CL=F) prices spiked in the middle of Friday's trading session on heightened tensions in the Middle East. Andy Lipow, president of Lipow Oil Associates, joins Market Domination to discuss how tensions between Israel and Lebanon could impact the global oil supply.

"What we've seen actually since Hamas invaded Israel nearly a year ago is there's been no oil supply disruption due to these geopolitical tensions in the Middle East. In fact, the oil market really doesn't think that we're going to have an oil supply disruption, because for that to take place, what you really need is Iran to get into a direct conflict with Israel that impacts shipping through the Strait of Hormuz," Lipow explains.

If Iran were to get involved in the conflict, it would likely cause some turmoil in the market as it worries about supply. "I don't think it's in Iran's best interest to go to war with Israel, nor I don't think it's in Israel's best interest to go to war with Iran. But I think that the probability of the Strait actually closing is pretty small," Lipow adds.

He notes that Iran, Kuwait, Iraq, and Saudi Arabia all rely on the Strait of Hormuz to monetize their oil reserves.

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