European Financial Institution: Oil Price Unlikely to Return to Pre-US-Iran Conflict Levels in the Short Term

BlockBeats News, April 9th, according to CCTV News, on the 8th, several European financial institutions released a report predicting that international oil prices are unlikely to return to the level before the US-Iran conflict in the short term. The market needs to pay attention to the situation in the Strait of Hormuz and the recovery of infrastructure in the Middle East.

ING Group stated that the news of the US and Iran agreeing to a two-week ceasefire has alleviated to some extent the market's concerns about long-term oil supply disruption. International oil prices have fallen to below $100 per barrel. The future trend of oil prices will depend on whether negotiations can reach a lasting agreement and whether shipping through the strait can return to normal levels. It is expected that the market will continue to experience volatility during the negotiation period.

UBS Group stated that it is still unclear when the strait's shipping can resume and to what extent. Some oil tankers will need time to replan their routes. If shipping through the strait is blocked again, energy prices may quickly rebound. Furthermore, even in an optimistic scenario, the repair of energy infrastructure and production recovery will take weeks or even months. Therefore, energy prices are unlikely to fall back to pre-conflict levels in the short term.