According to a report by Svmuu, Phillip Nova analyst Priyanka Sachdeva noted that if tensions continue to escalate, Brent crude prices could surge to $100 per barrel. She stated that while the market is currently primarily grappling with logistical risks rather than actual crude oil losses, this distinction could quickly narrow if the attacks persist.
Sachdeva pointed out that the greatest risk facing the energy market would be prolonged, simultaneous disruptions to traffic in both the Strait of Mandeb and the Strait of Hormuz. She added that, in such a scenario, the market’s flexibility to reroute cargo shipments would be extremely limited, and shipping disruptions could rapidly escalate into broader inflationary issues. (Jin Shi)