BNP Paribas Warns of Potential Economic Recession Due to Oil Price Surge

BNP Paribas has highlighted three scenarios that could potentially lead the global economy into a recession, with oil prices reaching $200 a barrel being one of them. According to NS3.AI, the bank noted that a prolonged conflict involving Iran could disrupt energy supplies from the Middle East, maintaining high inflation levels. This situation could, in turn, prompt central banks to adopt more hawkish monetary policies. On Wednesday, WTI crude experienced an intraday increase of up to 5%, while Brent crude reached $109 a barrel.