Middle East Crisis Oil Market

Bank Strategist: Market is ominously similar to 2008

The soaring oil prices and growing concerns in private credit are reminiscent of the run-up to the 2008 financial crisis, writes Bank of America strategist Michael Hartnett in an analysis, according to Bloomberg.

The parallel is based, among other things, on the fact that the price of oil doubled between 2007 and 2008, at the same time as the first tremors in the mortgage market began to be felt.

“The development of assets in 2026 is ominously close to the price movements from mid-2007 to mid-2008,” he writes.

Going forward, the most important thing will not be how high inflation is, but how corporate profits are affected, says Hartnett.

Sources: Europe Negotiates with Iran for Free Passage

Several European countries, including France and Italy, have begun talks with Iran to negotiate a safe passage through the Strait of Hormuz, sources told the Financial Times.

The aim is said to be to get the critical energy exports through the strait going without escalating the conflict.

According to the sources, there are no guarantees that the talks will succeed or that the Iranian government is even willing to negotiate.