RBC Analyst Warns Oil Prices Could Exceed $120 Amid Middle East Tensions
Helima Croft of RBC Capital Markets has warned that Brent crude oil prices could surpass $120 per barrel by year-end if conflicts in the Middle East persist. The escalation includes Houthi advances threatening maritime traffic through Bab el-Mandeb and their control over Yemen’s Red Sea port of Mokha, increasing risks to Saudi energy infrastructure. The situation has already driven oil prices above $100 per barrel for both Brent crude and WTI. This surge is contributing to rising inflation fears, prompting expectations of interest rate hikes in several developed economies by year-end, according to a JP Morgan forecast. Asian governments are also facing pressure as they consider extending financial support due to the impact on businesses and households from higher oil prices. Despite President Trump’s claim that the war will end after November elections, ongoing fighting suggests no immediate resolution is likely.
Topics: geopolitical_conflict inflation_risks interest_rates oil_prices