Lates News

A senior oil market expert said that if the United States goes ahead with its plan to implement a naval blockade of the Strait of Hormuz, oil prices should be much higher than current levels. "The number we saw this morning - Brent crude rising 8% to $103 - does not at all reflect the situation that would occur if the United States actually decides to implement restrictions," said Jose Montes of Onyx. "It makes no sense. It should be $140 or $150." Montes said that the US blockade could escalate a regional conflict into a global one, potentially reducing daily oil supply by up to 12 million barrels. He also pointed out that traders find the scenario of both sides of the Strait of Hormuz being blocked "extremely absurd," so oil prices have reacted relatively calmly during Asian trading hours.