Middle East Crisis Iran War

The horror scenario for oil: “Could end in a stock market crash”

The price of oil is rising after Iran responded with several counterattacks on gas facilities, following Israel’s attack on South Pars yesterday.

This marks a turning point in the war, say several experts. It also means that the long-term negative effects will be greater, even if the war were to end tomorrow. That’s what Dagens Næringsliv’s stock market commentator Thor Jensen believes.

Both he and Handelsbanken’s energy analyst Christian Kopfer do not rule out that the price of oil could reach $200 per barrel.

– It would be enough for there to be a stoppage in the Strait of Hormuz into the summer months. Then there would be almost no increase in prices, Kopfer tells DI.

“It would be pure poison for the stock market and could end in a stock market crash,” writes Jensen.

Several countries “ready to contribute” to the Strait of Hormuz

In a joint statement, six countries have expressed their readiness to contribute with “appropriate measures” to secure the passage of ships through the Strait of Hormuz, writes AFP.

Britain, France, Germany, Japan, Italy and the Netherlands also condemned Iran’s attacks “against unarmed commercial vessels in the Gulf” in the joint statement.


Expert on attacks: Turning point – war enters new phase

The escalation in the Persian Gulf, where critical energy infrastructure has now been put in the crosshairs, is described as a turning point for the markets, says Saxo strategist Charu Chanana to Reuters.

“This is because the conflict is no longer just about military headlines or the closure of the Strait of Hormuz,” she says.

Argus Media CEO Martin Senior also believes that the war is now entering a new phase, writes WSJ.

He believes that attacks on the facilities could create “a new level of energy impact from the war, beyond the closure of the Strait of Hormuz, as the time to repair damage could exceed the duration of the war.”