Oil Market Dynamics - Oil prices initially surged, with WTI jumping 14%, but retreated as no actual supply disruptions occurred [2] - Market focus shifts to Iran's response, which is expected to dictate oil's next move [2] - Iran exports approximately 15 million barrels of oil per day, representing about 15% of global supply [3] - A wider conflict could disrupt oil supply in Saudi Arabia or Iraq [3] - Potential blockade of the Strait of Hormuz could impact 20% of global oil flow [3] Natural Gas Market - European natural gas prices increased by 5% [4] - The Strait of Hormuz is the sole export route for Qatar and the UAE [4] - Qatar and the UAE together account for approximately 20% of global LNG supply [4] Risk Assessment - CIBC private wealth indicates a rising probability of a low probability scenario as the situation evolves [4] - Prices cannot sustain current levels unless barrels actually come off the market [2]
Energy prices surge on Middle East risks
CNBC Televisionยท2025-06-13 14:19