Oil to reach $250 per barrel if Iran blocks key shipment route

11Jul 2018
Correpondent
DAR ES SALAAM
Financial Times
Oil to reach $250 per barrel if Iran blocks key shipment route

TEHRAN is threatening to block the Strait of Hormuz, a crucial artery for oil shipments from the Middle East, if Iranian exports are hampered. This will result in a huge loss of global crude supply and soaring prices.

Vladimir Rojankovski, investment analyst at Global FX said that if the Strait is blocked for one or two months, oil traders could panic and buy out all available crude futures, sending prices to $250 (about 568,800/-) per barrel. However, Rojankovski expressed doubt that Iran would do that since the area is highly militarized.

Artem Avinov, leading analyst with TeleTrade, also predicts that oil prices could jump to $250 per barrel if the Strait of Hormuz is blocked by Iran. But he also notes that such a scenario is highly improbable.

 

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