Source: Fortune
Summary
The US-Iran conflict has led to a surge in oil prices, with gas prices reaching $4 per gallon. UBS economist Paul Donovan warns that “economic gravity” will eventually catch up with US households, who have been able to navigate the cost-of-living increases so far. The price of Brent Crude has reached $88, and crude oil futures are expected to remain high until December 2027. Goldman Sachs’ Jan Hatzius sees two possible paths unfolding: a swift recovery in oil flows or a further escalation of the conflict leading to prices above $100.
Our Reading
The numbers tell one story. UBS’s Paul Donovan warns of “economic gravity” catching up with US households. Gas prices have surged to $4 per gallon, up from $3.14 a month ago. The price of Brent Crude has reached $88. Goldman Sachs’ Jan Hatzius sees a risk of oil prices exceeding $100 if the conflict escalates. The situation is reminiscent of Wile E. Coyote’s infamous cliff-edge moment, where the consequences of the conflict will eventually catch up with US households.
Author: Evan Null
