Piper Sandler says Strait of Hormuz to remain closed for months and oil to hit new highs
Piper Sandler predicts that the Strait of Hormuz will remain closed for several months, leading to increased oil prices. The investment bank expresses skepticism about the potential for a deal with Iran, citing ongoing military actions and Iran's unwillingness to compromise. As a result, they foresee significant disruptions in oil supply and navigation through this critical shipping channel.
- ▪Piper Sandler believes the Strait of Hormuz will largely remain closed for months.
- ▪The U.S. military conducted strikes in southern Iran targeting missile sites and vessels.
- ▪Piper Sandler has low confidence that commercial traffic will return to 50% of pre-crisis levels.
Opening excerpt (first ~120 words) tap to expand
Piper Sandler isn't buying the talk that an Iran deal is nearing, telling clients that the Strait of Hormuz will largely stay closed and oil will hit new highs."We think the Strait of Hormuz remains largely closed for months yet, meaning shortages become more urgent and oil hits new highs this Summer," according to a recent note from the investment bank's energy and macro teams.West Texas Intermediate Futures are down since Friday but bounced back some on Tuesday with mixed messaging on a possible Iran deal over the long weekend. The U.S. military said it conducted "self-defense strikes" in southern Iran, which included targeting Iranian missile launch sites and vessels placing mines around the Strait of Hormuz.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at CNBC — Top.
Discussion
0 commentsMore from CNBC — Top
