Oil: Potential price surge amid geopolitical tensions – DBS

FXStreet Insights Team FXStreet

DBS Bank's Group Research report, authored by Taimur Baig, Ph.D., Chief Economist, and Nathan Chow, Senior Economist and Strategist, discusses the potential impact of US intervention in Iran on Oil prices. The report highlights that while current sanctions may not materially affect the oil market, a military response could push prices significantly higher. The analysis suggests that oil could reach USD100/barrel if the Iranian regime faces severe threats.

Geopolitical risks and oil prices

"At a time when inflation pressures are easing globally, oil has the potential to be a spoiler. We consider scenarios around US intervention in Iran."

"In such scenarios, military response from Iran could push oil to USD100/barrel and beyond."

"A US attack on Iran looks more a matter of when, not if. No wonder the oil market is tense."

"Even a last moment reprieve from immediate attacks may not soothe the oil markets."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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