Markets are mispricing energy risk, strategist warns of looming inflation shock

David Roche warns markets are overestimating the odds of an Iran peace deal and says oil is not accurately pricing current energy supply constraints. He flags the risk of an imminent global inflationary shock if geopolitical tensions keep energy prices elevated. The commentary is bearish for risk assets and supportive of higher crude and inflation expectations.

Analysis

David Roche warns markets are overestimating the odds of an Iran peace deal and says oil is not accurately pricing current energy supply constraints. He flags the risk of an imminent global inflationary shock if geopolitical tensions keep energy prices elevated. The commentary is bearish for risk assets and supportive of higher crude and inflation expectations.