What New Iran Attacks Mean for the Future of the Oil Market

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Bloomberg Jul 8 11:11 · 29.7k Views

The US launched fresh airstrikes on Iran and revoked a waiver that allowed it to sell oil globally. Bloomberg Economics' Chris Kennedy has more on what that means for the future of oil prices "Balance of Power: Evening Edition."

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Transcript

00:00 Chris, before we consider the the wider economic
00:04 outlook and how it factors into the midterms,
00:06 let's consider the trajectory possibly of oil prices.
00:09 Do you think
00:10 this renewed attention in the Strait of Rome is the attacks on these vessels, the subsequent strikes that the US is now
00:15 conducting will result in materially higher prices, at least in the short term.
00:20 So we saw a a little jump in oil prices after this latest announcement from Treasury that they were revoking the waiver.
00:25 And then of course, I, I think when markets open again, we'll see another jump.
00:29 Right now the world has a lot of oil.
00:31 I think the risk is that what we've seen is a declining gas price domestically, which is what consumers really care about,
00:38 hasn't been declining as much as oil prices.
00:40 There's still a lot of uncertainty in these oil product markets and there's still a lot of work to be done to normalize global energy markets.
00:47 So yes,
00:48 I think what we've seen today is that the ceasefire is very fragile and anything that up ends it for a period of time will of course put more pressure on global energy markets, especially as these emergency releases
00:59 start to
01:01 to end, because we are going to run out of these emergency,
01:03 emergency releases
01:05 sometime in probably late September.