Helima Croft, Global Head of Commodity Strategy at RBC Capital Markets, highlights how the tension between the U.S. and Iran could have an effect on oil prices and potential military conflict.
'Though trade war concerns have roiled the oil market at times recently, we continue to contend that events in the Middle East warrant very close attention.
With hardliners in both the U.S. and Iran holding sway, the two longtime adversaries remain locked in a bellicose standoff that threatens to boil over. While a diplomatic off-ramp may yet emerge, we believe the current oil price does not really reflect the degree of risk that potential incidents represent. Investors shouldn’t see the escalating conflict as “business as usual.”'
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