Oil prices surged on renewed fears of the Iran war’s expansion — yet markets are still understating the impact the conflict will have on energy, analysts said.
Brent crude, the international benchmark, hit $116 after a record monthly increase, but is still below previous crisis heights.
The stranglehold on the Strait of Hormuz has been partially offset by a Saudi pipeline to the Red Sea, but that is now at capacity, Bloomberg reported, and the route itself is at risk.
Analysts warned that further price rises will hit consumer demand, and that the war could trigger a bond market slowdown and a wider economic slump. G7 ministers are holding emergency talks Monday on how to limit the fallout.