Hormuz Closure May Send Brent Oil to $200 a Barrel, SocGen Says
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Brent crude futures may surge to as much as $200 a barrel for a limited period if Iran halts shipping through the Strait of Hormuz, according to Societe Generale SA.
Iran, which has threatened to block the waterway if sanctions are imposed on its crude exports, would be able to shut the strait for about two weeks, the bank said in a report. Oil prices would subsequently advance to a range from $150 to $200 a barrel, damaging the global economy, according to SocGen. Still, such an event isn’t likely, the bank said.