finance
Analyst Warns Oil Prices Could Rise in July if Strait of Hormuz Closes
Fereidun Fesharaki of FGE NexantECA told CNBC that a four-month closure of the Strait of Hormuz would sharply increase oil prices. He said traders are focusing on optimistic signals about a U.S.-Iran deal rather than worst-case supply risks.
May 25, 8:30 AM·1m read1 source
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Fereidun Fesharaki, Chairman Emeritus of energy consultancy FGE NexantECA, said Monday that oil traders should prepare for a possible price spike in July if the Strait of Hormuz remains closed for four months. Fesharaki told CNBC that four months of closure would create a "disaster" and could contribute to a global recession.
-Iran agreement as positive. "Nobody wants to think about the worst-case scenario. So everybody thinks every news is good news," Fesharaki said on the CNBC Access Middle East program.
-Iran deal. He said recent signals from Washington suggesting an imminent agreement do not represent a meaningful shift from conditions several weeks earlier. "They really think this is a change. We are not nearer a peace agreement than we were several weeks ago," Fesharaki said.
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