ME Escalation – The Start of the Oil Stop
Escalation of the Gulf makes the US policy of cutting off Iran’s oil revenues much more effective. The struggle within the Iranian regime, with the hardliners gaining ascendancy at the moment, makes a negotiated settlement with the US that opens the Straits of Hormuz unlikely.
The combination of both means the oil supply “stop” is now a reality and will push oil prices towards US$ 125-150 bbl. The oil supply “stop” is helped by the closure of the Red Sea where the Houthis have cut off Yanbu pipeline flows from Saudi Arabia (5mn bpd).
The markets are dreaming and won’t dream on for long. The Wealth Preservation Portfolio is attached. It is set up for this scenario.
Loading Document...
Comments
No Comments Yet