Oil Prices Soar Amid Middle East Conflict, Warning for Portfolios
Nigel Green, CEO of deVere Group, warns that the recent oil price jump is a warning shot for portfolios and not just markets.
The oil spike comes as Brent crude jumped 3.42% to $86.97 a barrel and US West Texas Intermediate rose 3.58% to $82.09 after Iran fired ballistic missiles at American forces in the Middle East and US and Saudi jets struck Iran-backed sites in Iraq in response.
Green notes that markets had started to relax, pricing in de-escalation, but that assumption was torn up with the renewed strikes.
The concern goes beyond energy markets themselves because oil shocks have a well-worn path into interest rate decisions.