Analyst: "Physical Reality" Dominates Oil Price Surge, Trump's Verbal Intervention Has Limited Effect

Odaily News: Energy market consulting firm FGE NexantECA stated that if the near-closure of the Strait of Hormuz due to the Iran war persists over the next six to eight weeks, oil prices could soar to $150 or even $200 per barrel. The company's honorary chairman, Fereidun Fesharaki, said on Tuesday: "If 100 million barrels of oil cannot pass through per week, that means 400 million barrels per month cannot pass through. Therefore, for a period of time, the losses incurred by the market will be astronomical." Fesharaki expressed skepticism about the effectiveness of Trump's verbal interventions (including remarks about possibly ending the conflict), believing that the "physical reality" of supply disruptions will ultimately drive prices. He stated bluntly: "As long as the Strait of Hormuz is physically closed, prices will naturally rise. No matter what Trump says at the political level, it won't help." (Jin10)