Oil Pullback While Banks See $120: Is the War Risk Still On The Table?
Iran is implementing a “targeted strategy”: instead of indiscriminately blocking all shipping lanes, it is allowing only vessels from specific countries to pass.
Analysts warn that the global oil market is severely underestimating the disruptive impact of this strategy. Due to the extreme lack of transparency in passage criteria, war risk premiums have not declined—instead, they continue to surge because of unpredictable risks.
Although oil prices have recently pulled back, Has the risk ended? Will Brent crude break above Citi’s projected $120 ceiling and surge toward $140?
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