Oil Needs To Stay Above $93 A Barrel For Months To Hurt Real Estate Economics: Ashish Puravankara
The US-Israel attack on Iran and Iran's retaliation have caused oil prices to surge, with Brent crude rising as much as 13% on Monday. A prolonged disruption to oil traffic in the Strait of Hormuz could see oil prices breach the $100-a-barrel threshold, hurting the global economy and real estate markets.
Oil markets are bracing for sharp price spikes after the US-Israel attacks on Iran. Iran's role as a major producer and its strategic position near the Strait of Hormuz are keeping traders on edge. The strait carries around one-fifth of oil consumed globally. A disruption to traffic in the strait could see oil prices rise. Oil prices had already risen ahead of the latest war in the region. The OPEC+ group agreed to boost production from April to calm markets. Iran produces about 3.3 million barrels of oil per day. The country's production has remained limited due to underinvestment and international sanctions.
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