Worst-Case War Scenario Could Mean $140 Oil, Says Allianz Trade
- Boata places 20% probability on crude-cost surge transpiring
- Sovereign risks have also increased in Europe and US, she says
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War in the Middle East could cause the oil price to surge to $140 a barrel and bring the world to the brink of a recession, according to Ana Boata, head of economic research at Allianz Trade.
Speaking to Kriti Gupta on Bloomberg Television, the Paris-based analyst placed a 20% probability of such an outcome transpiring, with hostilities between Israel and Hamas — designated a terrorist group by the US and the EU — turning into a broad regional conflict that shuts down crude supplies.