Oil prices more subdued on Monday after soaring late last week
by Mike Sheen
ThisIsMoney.co.uk
There are growing fears of another energy driven inflationary shock the economy, as oil and gas prices continue to climb in response to Israel’s conflict with Iran.
Oil prices were more subdued on Monday, trading at $73.52 a barrel, after trading as $78 in the wake of Israel’s initial strikes on Iranian target and the subsequent retaliation from Tehran that threatens to destabilise energy markets in the region.
Markets fear the conflict hurt energy supply, particularly if there any disruption to the Strait of Hormuz, a key transit chokepoint responsible for a third of global seaborne oil and 20 per cent of liquified natural gas.
If the straight between the Persian Gulf and the Gulf of Oman is compromised, oil prices could be driven ‘upwards’ of $120, according to analysts at Lazard Geopolitical Advisory.