The world faces its worst oil supply threat since the late 1970s and early 1980s amid potential disruptions in the Middle East and Africa, according to Deutsche Bank AG.
“We view a blockade of the Strait of Hormuz as a low probability given the serious economic damage it would have on Iran itself,” Soozhana Choi, the Singapore-based head of Asian commodities research at Deutsche Bank, said in a report today. “The mere utterance of such a threat is a grave concern for the oil market given the strategic importance of the strait on a global scale,” she said. Full story
