The oil market froze in anticipation: will Trump use common sense?

Oil prices are soaring on global markets amid rising tensions in the Middle East, which could lead to fuel shortages. In addition, the threat of a US ground operation against Iran poses risks of the largest financial crisis in decades.

This opinion was expressed on the air of “Pryamoy” by investment banker Serhiy Fursa.

According to him, the price of a barrel of Brent crude was fixed at $113. This jump occurred after mutual attacks on energy facilities and threats from Iran, which forced the market to react instantly.

“Oil is at its peak, oil is expensive. And in fact, soon we may experience a shortage, because due to rising prices there are certain consumption restrictions that some governments are imposing. So far, there is no such significant shortage, but it is theoretically possible,” Fursa noted.

The analyst noted that investors had hoped for de-escalation until the last moment, but the reality turned out to be different. Since there are no clear prospects for ending the conflict, it is not worth expecting a significant decrease in the price of the resource in the near future, so the world may face a fuel shortage if the situation does not stabilize, the investment banker explains.

In addition, he believes that the threat of a US ground operation against Iran poses risks for the largest financial crisis in decades. Fursa warned that ignoring real threats by the markets could lead to unpredictable consequences, as the stock market is currently overheated by the largest “bubbles” in history, and any serious shock will provoke a collapse.

“If they get in there, if Trump gets in there, it will be very, very painful. A potential recession, a potential very deep crisis could come at any moment, because everything has been growing for a very, very long time,” predicts Serhiy Fursa, emphasizing that a major economic crisis could become inevitable if the escalation enters an uncontrolled phase.

Recall that attacks on energy infrastructure in the Persian Gulf have sharply increased oil and gas prices and could trigger a worst-case scenario for the global fuel market . Bloomberg analysts warn that the escalation of the conflict has already changed the balance in the market. Brent oil has risen sharply: on March 18, it exceeded $ 111 per barrel for the first time, and the next day it approached $ 119.

As reported, the world is approaching a large-scale gas crisis due to the shutdown of key facilities in Qatar and the blockade of the Strait of Hormuz. This concerns the shutdown of the world’s largest liquefied natural gas plant, Ras Laffan, which stopped operating after attacks by Iranian drones.

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