Rabobank’s Global Strategist Michael Every notes that Oil prices remain below $100 even as geopolitical risks escalate in the Middle East. Every highlights US-Iran tensions, threats over the Strait of Hormuz, and ongoing military actions. It also references European Central Bank (ECB) warnings about a potential financial crisis linked to the Iran war’s impact, without specifying direct Oil price targets.

Oil steady despite rising conflict risk

"It’s remarkable screen oil prices are little changed at below $100 today after Trump said the US is “not satisfied” over talks with Iran, days after claiming a deal was imminent, and hours after saying the terms the Iranians had leaked that the US agrees to --a real TACO-- were a “complete fabrication.”"

"It’s more remarkable when Trump added Iran and Oman will not control the Strait of Hormuz, which they say they will; vowed to blow up Oman if it misbehaves; struck Iran again in another “defensive action”; and reiterated a deal requires the region to sign up to the Abraham Accords, underlining it has to be a turning point to a new geopolitical/economic architecture."

"In related geoeconomics, the ECB warned of a financial crisis triggered by the Iran war impact; a ‘plastic shock' is hitting Asia; Central Asia could turn to China over water security fears; and China and Cuba are holding agriculture talks as Beijing backs it against US pressure."

"But for now, it’s what is and isn’t over the Middle East that’s the primary focus."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)