The oil price direction will depend on Iran's retaliations against the current impasse with the United Kingdom, either via uranium enrichment, or via military response. The evaluation is by Helima Croft, global head of commodities at RBC Capital Markets, and highlights the current tension in the Middle East.
"If an agreement does not occur and Iran starts uranium enrichment again above for 20% levels and spins higher speed centrifuges, we will be close to a military confrontation involving the U.S. and Iran, or potentially Israel and Iran" , he evaluated, according to CNBC. "A military confrontation or even punctual military attacks can cause oil prices to rise temporarily," he said.
The severity of the situation is assessed by the importance of the Hormuz Strait: about 33% of the transoceanic oil volume passes through the region.
For Capital Economics, in case of war, oil prices can reach "about US $150.00 a barrel, in case of hostile action outbreak."
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