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RBC Highlights Hezbollah Risk for Oil

OIL

Middle East escalations have failed to create much upward momentum for oil markets because of the lack of impact on supplies due to the conflict so far according to RBC’s head of commodity research Helima Croft.

  • “Many market participant do not believe energy supplies are at risk from this Middle East conflict,” Croft said.
  • “They saw the direct confrontation between Iran and Israel in April did not lead to any supply outages,” Croft added.
  • “We continue to warn at RBC that the biggest risk for this conflict to Iran becoming involved in a sustained way is if you have Israel invade Lebanon for any serious direct confrontation with Hezbollah,” Croft said.
  • “Hezbollah is Iran’s most import proxy and a very important story to monitor,” Croft said.

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