Oil Prices Face Uncertainty Amid Iran Conflict, Says Capital Economics

Oil prices are experiencing significant uncertainty due to the ongoing conflict involving Iran, according to Jin10. Capital Economics has released a research report suggesting that the most likely scenario is a short-lived conflict lasting only a few weeks. This could result in Iran facing internal pressure or a swift military defeat, leading to a potential surrender to the United States or Israel. In such a case, oil prices might significantly drop to $65 per barrel. However, the report also highlights the possibility of a prolonged conflict that could severely impact Gulf energy infrastructure. If the energy infrastructure in the Gulf region and Iran suffers substantial damage, Brent crude oil prices could average $150 per barrel over the next six months.