Oil Surges Above $70 a Barrel as Asian Markets Digest Iran News

Analysts at Capital Economics have warned that the price of oil could spike to $150 a barrel if the bellicose rhetoric between the two countries turned into action.

“The price of oil would soar in the event of full-blown military conflict in the Middle East,” said Alexander Kozul-Wright, a commodities economist at Capital Economics.

“However,” he added, “this rally would probably be short-lived as supply networks would adjust and demand would slump in the wake of higher prices.”

Stocks fell in financial capitals across Asia. In Tokyo, shares fell by more than 2 percent in morning trading, while major stock markets in Hong Kong, Taipei and Seoul inched down about one percent.

Article source: https://www.nytimes.com/2020/01/05/business/global-markets-iran-oil.html?emc=rss&partner=rss