Market Talk: Oil markets brace for fresh turmoil

Crude oil markets are facing potential turmoil due to geopolitical risks, including potential new Iran sanctions and President Trump's musings about declaring the Strait of Hormuz a US territory. Wood Mackenzie research director Sushant Gupta explains that while traders have become somewhat accustomed to the cycle of escalation, market sentiment's impact on price has decreased, with fundamentals becoming more critical. Despite falling demand, global oil supply remains short, drawing down stocks. Gupta suggests that if current conditions persist for several months, depleted inventories could trigger market panic and price increases, potentially impacting global economic growth, with US elections and recession fears acting as potential turning points.

IRAN SANCTIONS STRAIT OF HORMUZ DONALD TRUMP OIL MARKETS WOOD MACKENZIE