Expert Says Traders Should Brace for July Jump in Oil Prices

AI Summary

Oil market expert warns traders to anticipate a spike in oil prices in July due to the potential closure of the Strait of Hormuz, which could lead to global economic disruption. The market currently reacts positively to news of possible US-Iran deals, though risks remain significant.

Oil traders don't want to think about the worst-case scenario and lap up every word of U.S. President Donald Trump about a potential deal with Iran, but the market needs to brace for a spike in oil prices in July because four months of closed Strait of Hormuz is a recipe for a “disaster” and global recession. These were the comments from Fereidun Fesharaki, Chairman Emeritus of energy consultancy FGE NexantECA, who told CNBC early on Monday that the oil market and the equity markets are at a stage where “any news is good news”…