Baosheng Bank: Despite Ongoing Tensions in the Middle East, Oil Prices May Have Peaked

Odaily News Swiss Baosheng Bank's Head of Economics and Next-Generation Research, Norbert Rücker, stated that despite ongoing tensions in the Middle East, oil prices may have already peaked. He pointed out that crude oil demand still exceeds supply, and trade through the Strait of Hormuz must ultimately normalize to avoid greater shocks. However, the worst period may already be over. "The current crisis appears most similar to the Gulf War in 1990, which caused a short-term oil price shock. Using this as a reference, oil prices may have already peaked." (Jin10)