Amrita Sen predicts oil prices could exceed $100 per barrel as U.S. strikes against Iran threaten the Strait of Hormuz.
Amrita Sen, founder and director of research at Energy Aspects, suggests that oil prices could reach triple digits as tensions between the U.S. and Iran escalate. The potential price surge follows a series of U.S. military strikes aimed at degrading Iranian capabilities and securing the Strait of Hormuz, a vital waterway handling 20% of the world's oil traffic. Current market conditions include a substantial slowdown in shipping traffic and depleted global inventories. While prices recently rose, Sen noted that the market remains somewhat complacent. She observed that many investors are currently focused on other factors, such as artificial intelligence, rather than the immediate threat of a sustained price spike. The conflict has intensified after the U.S. military confirmed a third service member was killed in recent operations. While Iran claims full control over the waterway, the administration's continued strikes on Iranian coastal surveillance and missile storage facilities aim to ensure the steady flow of energy shipments to global markets.