Forget the 4% oil price hike jump. Watch what it now costs to insure a tanker through Hormuz, says the CEO of one of the world’s largest independent financial advisory organisations.
The US Dollar remained close to a one-week high during Asian trading on Wednesday as renewed military exchanges between the United States and Iran boosted demand for the safe-haven currency.
Global oil markets are sending the wrong signal by treating the latest attacks on commercial shipping in the Strait of Hormuz as a contained geopolitical incident rather than a potentially significant threat to energy supplies, warns the CEO of financial advisory giant deVere Group.
Even if the Strait of Hormuz opens on Friday as Trump says following a peace deal, normal levels of transit will take months to resume, meaning the war will hang over inflation, monetary policy and asset prices.
At best oil drops to $80, but that’s “a different world” to what we had before the US-Iran war, predicts the CEO of one of the world’s largest independent financial advisory and asset management organisations.
Closing the Strait of Hormuz outright would ignite a sharp and immediate surge in oil prices beyond previous spikes, and investors must brace for intensified volatility.
A significant relief rally is now underway, but oil prices are set to remain structurally higher, warns the CEO of one of the world’s largest independent financial advisory organisations.
