Crude oil prices will cross $120 if the middle eastern heat continues, according to the head strategist of RBC, Helima Croft.
"Maritime traffic through the Bab el-Mandeb is gravely imperiled by the Houthi advances," she said to Reuters. There have been news reports of the Yemeni Houthis taking control of the Red Sea port of Mokha, which will aid in launching more direct attacks on Saudi energy infrastructure and their Red Sea tankers.
This leads to the surge in the Strait of Hormuz, due to which Brent crude and WTI both over $100 per barrel. Today, Brent crude almost touched $110 per barrel.
Eight to nine developed economies may hike interest rates by the end of the year, according to JP Morgan. Including the United States, Japan, Europe, Australia and New Zealand.
"The tightening is for now expected to remain shallow, but risks to our forecasts lean in the direction of more action in the face of resilient growth, sticky core inflation, and commodity price pressures," a JP Morgan analyst said.
This also affects Asian economies, Bloomberg reported today. It is said that governments in the region will need to extend financial assistance for businesses and households as oil and diesel prices skyrocket.
Relief seems superficial with the condition of the Middle East. According to the US President Donald Trump, the situation should get better after the November elections but it seems unlikely as none of the sides are talking about peaceful negotiations.
