Gulf tensions and American elections could drive crude higher by next year, threatening higher inflation and a potential recession in the US, strategists warn.
Westpac has warned clients that oil prices could surge towards $US150 a barrel in the first half of next year if the Iran conflict continues to intensify, despite a recovery in exports in recent weeks.
That would imply a 38 per cent spike in Brent crude, the global benchmark, from current levels of around $US110 a barrel on Wednesday. On Tuesday, oil hit $US112 a barrel, its highest level in five months.
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Trump says "status quo" is what Gulf Arab allies want as Iran war hits stalemate and midterms force pivot from threats of attacks to economic pressure
Despite Treasury's Scott Bessent's remarks, financial tracker CME Fed Watch forecasts rate hike in December likely.
Iran said it targeted a US military installation in Bahrain early Friday in retaliation for what it described as an American attack on Iranian territory, marking its first attempt to strike a military facility in a Gulf state in more than two months.
Supplies outstripped demand by almost 2m barrels a day in October as market shows ‘tentative signs of rebalancing’
It says it has never been able to inspect a uranium enrichment plant at Isfahan which Iran announced over a year ago.
After reports Vance was considering new direct negotiations with a senior Iranian official, the president has decided that time would be better spent fighting another battle – against the Democrats.
