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War with Iran Isn’t Inevitable as Window to Avert Spread Closes: RBC

OIL

The window for a diplomatic push to avert a wider war in the Middle East now appears to be closing and oil prices do not reflect the stakes at play according to RBC. RBC however cautions that a wider war with Iran isn’t seen as inevitable.

  • Oil prices are “a lagging indicator of the immense volatility in the region,” according to a note from 18 Oct with prices rising approximately 8% since the Hamas attack on 7 Oct.
  • “A regional crisis appears the most likely outcome” after Arab leaders cancelled meetings with US President Joe Biden.
  • The risk of a second front on the northern border of Israel appears to be steadily rising with an increase in Hezbollah rocket attacks.

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