“Get ready for oil to be $200 a barrel, …” a spokesperson for Iran’s military command, said Wednesday.
At least 13 foreign oil and cargo ships have been struck in the Persian Gulf, and Iran’s new Supreme Leader stated that the Strait of Hormuz must remain closed as a “tool to pressure the enemy.”
Still, prices are still below $100 per barre, perhaps suppressed to a small degree by the release of 400 million barrels of oil from by the emergency reserves of by certain countries, with 172 million barrels coming from U.S. reserves alone.
Meanwhile, the Crude Oil ETF Volatility Index is at multi-year highs, the highest since 2020 when COVID-19 disrupted global supply chains. The OVX is a key instrument for gauging volatility in the oil market. Currently, implied volatility suggests $32.89 in cumulative moves over the next 30 days.
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