The situation between Iran and the US is unstable, with tensions rising over the Strait of Hormuz and the possibility of failed negotiations. President Trump is urging Iran to participate in talks while maintaining a tough stance and strengthening sanctions. With the current negotiation stalled, various scenarios are being forecast for the future of the conflict.
Citi analysts outlined three scenarios for oil prices, estimating a potential surge to $130 a barrel if flows through the Strait of Hormuz remain disrupted. The scenarios are linked to the ongoing U.S.-Iran tensions and the potential for prolonged disruption of oil supplies. Citi warned of potentially catastrophic oil price increases if the disruption continues for an extended period.