Oil prices are expected to jump in reaction to the US strikes on Iran’s nuclear facilities, but the long-term impact may be muted, experts said.
Oil prices have risen since Israel began attacking Iran, but supplies have remained steady.
“The world has enough oil,” S&P analysts wrote. Still, if Iran follows through with a threat to close the Strait of Hormuz, a key oil shipping route, it would severely curb supply and disrupt global markets.
Such a move however, would mostly harm Tehran’s ally China, which buys the vast majority of Iranian oil.
Investors are also bracing for a knee-jerk stock selloff Monday, with analysts warning that surging oil prices and further escalation could trigger an extended rout.
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