RE:Biden and minions on panic mode That's exactly wihat I'm trying to figure out. What happens to oil prices in the worst case? My idea of a worst case is that Iran shuts down the Suez Canal with Houthis missile attacks and the Straits of Hormuz. No oil or LNG would come out of the Persain Gulf and trade between Asia and Europe would be disrupted as a major supply route through the Suez Canal would be blocked. Supply chains would be disrupted over wide swaths of the global economy. The conflict would begin to affect many more countries all over the globe.
Would it cause oil demand destruction along with supply disruption? I guess that if demand destruction was less than the supply destruction then prices would move up. It could well turn out that hydrocarbon producing areas like North America would do OK and remain stable while other economues in Asia mostly go into economic and financial distress. And what becomes of Europe? Lots of uncertainty.
Also, if the worst case did occur, then would there be a flight to safety with people dumping equities to buy treasuries or US dollars. Or gold? Or oil futures?
So let's see how Israel responds. If their response amps up and escalates the confluct then at some point the conflict will no longer be contained and will spin out of control with widespread global impacts. Might be good for Canadian oil producers if they are seen, by investors, as a safe haven.