Middle East Tensions Could Surge Oil Prices to $140/Barrel, Risking Global Recession: Allianz Trade

Crude oil prices could surge to $140/barrel due to Middle East tensions, triggering a recession according to Allianz Trade.

Higher oil prices would cause central banks to delay interest rate cuts, slowing global growth to 2%.

A 20% probability of global inflation hitting 5% with high oil prices.

In September, most analysts saw 2023 Brent Crude averaging below $100/barrel. The consensus is now $84.

China defends Belt and Road Initiative amidst global criticism.