Citi: The risk of escalation between the US and Iran has risen significantly, and oil prices may remain high for an extended period

If this move is implemented, the risk of an escalating situation between the US and Iran will increase significantly, and the likelihood of Iran withdrawing from the memorandum of understanding before the US midterm elections will also rise. This could result in oil prices remaining elevated for a longer period. The bank currently expects that the two countries will resume diplomatic negotiations within one to two weeks, and, before that, its oil price forecast will remain unchanged.