In an interview given to France 24 on 10 Jan 2020, Dr Carole Nakhle, CEO of Crystol Energy, joined Khaled Karawi to discuss the impact of US-Iran tensions on the geopolitics of the Middle East and potential impact on oil markets and prices.
Dr Nakhle explained that the Middle East remains an important region for oil production and trade. Any military escalations in the region would therefore put upwards pressure on prices. However, after an initial tense situation, such a scenario seemed be less likely as political talks progressed and given the prevailing market conditions – trade wars on the demand side and shale oil on the supply side. As such, oil prices have not over-reacted to the latest geopolitical developments. Dr Nakhle also commented on the US-China trade wars emphasizing the dampening effect such wars have on global economic growth and in turn oil prices.