Helima Croft, head of global commodity strategy at RBC Capital Markets, stated in a report that if the conflict in Iran continues over an extended period, oil prices could reach $100 per barrel.
Without a feasible plan to encourage shipping firms and insurers to arrange tanker passages through the Strait of Hormuz, the lack of secure alternative export routes could leave a significant portion of Middle Eastern energy exports as "stranded assets."
Energy has clearly become a focal point in the Iran conflict, and the ultimate price movement will depend on the duration and scale of disruptions caused by the conflict. However, Iran’s drone capabilities and missile stockpiles suggest market participants should prepare for potential cascading supply interruptions.
