Michael H
Moving closer towards the worst-case scenario
The bombing of Iranian nuclear facilities by the US over the weekend increased supply risks significantly for the oil and LNG market. The big question now is how Iran
U.S. Strikes On Iran Intensify Oil Supply Risks
Summary
- The bombing of Iranian nuclear facilities by the US over the weekend increased supply risks significantly for the oil and LNG market.
- Clearly, a major risk for the oil market is Iran now attempting to disrupt shipping flows through the Strait of Hormuz. This is a crucial choke point for global oil and LNG flows.
- Under a successful blockade, we would expect to see Brent trade up to $120/bbl in the short term. A prolonged outage (until the end of 2025) would likely see prices trading above $150/bbl to new record highs.
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