Brent crude, the international benchmark, rose nearly 2 percent on Thursday to top $104 per barrel after Tehran dismissed reports of direct negotiations with US President Donald Trump's administration.
"Even before the conflict, I thought recession and risks were on the rise. Recession risks are very high—and unless the hostilities are coming to an end now, I think recession is more than likely by the second half of the year."
Goldman Sachs now expects Brent crude to average $105 per barrel in March and $115 in April before retreating to $80 by year-end, assuming roughly six weeks of Hormuz supply disruptions.
"We posit that the ongoing loss of energy supply to [the] global economy is so large (larger than the shocks of the 1970s as a share of oil supply) that it simply must be solved, either militarily or diplomatically, and that through various potential channels this occurs by mid-late April."
"Fuel surcharges are not a stranger to the cruise industry," says Leslie Fambrini, a travel specialist. This indicates that such fees have been previously implemented and are part of the industry's pricing strategies.
"There are very real physical manifestations of the closure of the Strait of Hormuz that are working their way around the world through the system that I don't think are fully priced in," said Chevron CEO Mike Wirth.
The Consumer Staples Select Sector SPDR Fund (XLP) has spent 27 years being the answer to the question of which part of the market absorbs the blow best during economic downturns, holding 36 positions across essential goods.
"We have recently launched the largest ever release of IEA emergency oil stocks - and I am in close contact with key governments around the world, including major energy producers and consumers, as part of our international energy diplomacy."
