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Oil prices may climb again as Strait of Hormuz closes in Iran war
Analysts cited by the SCMP Economy warn that sustained oil above US$100 a barrel could accelerate inflation and weigh on consumption.
Oil prices are expected to rise again after renewed US attacks on Iran contributed to the Strait of Hormuz closing, according to the SCMP Economy.
The outlet says US strategic petroleum reserves are at their lowest in more than 40 years, which it argues will make it harder for America to keep oil prices below US$100 a barrel.
SCMP Economy reports that analysts are concerned sustained prices above US$100 could accelerate inflation, depress consumption, and invite recession, while attention is turning to whether China can cushion any increase.
The outlet adds that recent discussion of Beijing withdrawing a “safety net” for oil prices could set up a narrative shift blaming China if prices rise.