Oil prices could hit record $200 per barrel amid Middle East conflict escalation
Analysts at Macquarie Group Ltd. warn that oil prices could reach a historic $200 per barrel if the military conflict involving the US, Israel, and Iran persists until June, and the Strait of Hormuz remains closed.
The previous peak for Brent crude oil stood at $147.5 per barrel in 2008. Macquarie estimates that the new price high may exceed that figure by more than 35%.
Traders are actively buying Brent oil options, anticipating prices could reach $150 per barrel by the end of April. According to data from the ICE exchange, the number of contracts allowing the purchase of June futures at $150 has increased nearly tenfold—from 3,400 to 28,900 lots.
Macquarie Group Ltd. is an international financial services provider specializing in commodities markets including oil and gas, well known for its influential market forecasts that shape investor and trader behaviour.
The rising tension in the region and potential blockade of a key maritime route pose serious threats to oil market stability, potentially driving prices sharply higher and impacting the global economy.
If the situation worsens, high volatility in energy markets and further upward revisions of price expectations by investors are likely to continue.
