Oil's $100 Panic May Be Overdone — One Economist Sees 3 Catalysts For Drop

Brent crude has surged past $100, rising roughly 50% since hostilities escalated around the Strait of Hormuz. The rapid move from complacency to panic reflects heightened geopolitical risk at a critical oil shipping chokepoint and is likely to drive higher energy costs, inflationary pressure and risk-off positioning across markets.

Analysis

Brent crude has surged past $100, rising roughly 50% since hostilities escalated around the Strait of Hormuz. The rapid move from complacency to panic reflects heightened geopolitical risk at a critical oil shipping chokepoint and is likely to drive higher energy costs, inflationary pressure and risk-off positioning across markets.