Rabobank: Oil Markets Price Renewed Hormuz Risks After US-Iran Pact Collapse

Rabobank strategist Michael Every warns that oil markets are pricing in renewed risks around the Strait of Hormuz after what he describes as the apparent collapse of a US-Iran memorandum of understanding.

Every notes that both sides are now directly striking each other, with the United States adjusting its strategy to rely on escorted energy shipments. The escalation in the strategic waterway, through which a significant portion of global oil supplies transit, is raising the geopolitical risk premium for crude.

While no specific price targets are mentioned, the analyst highlights that markets are already incorporating this uncertainty, suggesting potential upward pressure on energy prices if tensions continue to mount.