Rolling coverage of the latest economic and financial news Oil prices rise as Iran war threatens shipping through strait of Hormuz Analysts are warning that the US-Israel war with Iran could drive oil prices up to $100 a barrel. Consultancy firm Wood Mackenzie is warning that higher oil and gas prices are certain, and that oil prices could potentially exceeding $100/barrell if tanker flows through the Strait of Hormuz are not quickly restored. “The key question is when do vessels re-establish export flows. “No doubt, tanker rates and insurance will increase dramatically, but these costs would only be a small part of the oil price impact associated with a curtailment of oil flows if they last for more than a few days.” “During that time, oil prices are heavily risked to the upside. The most recent comparison is during the early days of the Russia/Ukraine conflict, when the fear of loss of Russian supplies drove the oil price to over US$125/bbl.” Continue reading...