Middle East Conflict Triggers Oil Price Spike Fears

A renewed conflict in the Middle East has sparked concerns about the potential impact on oil prices. According to Bart Melek, Head of Commodity Strategy at TD Securities, this could lead to triple-digit oil prices and potentially even demand destruction. Oil inventories are already lower than earlier in the year, which may contribute to higher prices.

Melek notes that higher inflation and demand destruction could be possible if prices remain high. This is a concern for consumers and businesses alike, as it could lead to increased costs and reduced economic activity.