DBS Financial institution’s Group Analysis report, authored by Taimur Baig, Ph.D., Chief Economist, and Nathan Chow, Senior Economist and Strategist, discusses the potential influence of US intervention in Iran on Oil costs. The report highlights that whereas present sanctions might not materially have an effect on the oil market, a navy response might push costs considerably larger. The evaluation means that oil might attain USD100/barrel if the Iranian regime faces extreme threats.
Geopolitical dangers and oil costs
“At a time when inflation pressures are easing globally, oil has the potential to be a spoiler. We think about situations round US intervention in Iran.”
“In such situations, navy response from Iran might push oil to USD100/barrel and past.”
“A US assault on Iran seems extra a matter of when, not if. No surprise the oil market is tense.”
“Even a final second reprieve from fast assaults might not soothe the oil markets.”
(This text was created with the assistance of an Synthetic Intelligence software and reviewed by an editor.)
