Oil prices to remain high as Israel-Iran geopolitical risks increase, Pimco reports

War is always a potent driver for higher prices. But Iran is hardly one of the truly big producers. It is very far from the big 3 USA, Russia, and Saudi Arabia in terms of volumes and hardly makes it into the second tier. The potential is there but their infrastructure is old, outdated, and creaking. It has also been battered by decades of sanctions. Also, Iran may throw a fuss but when push comes to shove they have nothing that can prevent shipping anywhere. Sure, their proxies in Yemen made transport through the Red Sea more expensive but that’s not going to be the big spoiler of fun as it will also drive a much bigger wave of innovation and consolidation in global shipping as well as fuel the drive towards close to homegrown solutions for everything. High prices – only in the nanosecond world. 

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