Qatar, UAE Can Survive Hormuz Closure, Says Ed Morse

Oil prices rose after the US conducted another wave of strikes against Iran, amid disputes over whether the Strait of Hormuz is open. The uncertainty around chokepoint shipping raises near-term upside risk to crude and related energy benchmarks as traders price potential supply disruptions. Expect continued volatility in energy markets until the status of Hormuz and further escalation/de-escalation signals become clearer.

Analysis

Oil prices rose after the US conducted another wave of strikes against Iran, amid disputes over whether the Strait of Hormuz is open. The uncertainty around chokepoint shipping raises near-term upside risk to crude and related energy benchmarks as traders price potential supply disruptions. Expect continued volatility in energy markets until the status of Hormuz and further escalation/de-escalation signals become clearer.