Market Outlook: Oil volatility pressures stocks as Iran conflict drags on
BNN Bloomberg
Oil prices tied to Iran conflict weigh on stocks as uncertainty grows and investors are urged to stay patient amid volatile conditions.
BNN Bloomberg spoke with Yung-Yu Ma, chief investment strategist at PNC Financial Services Group, who said markets are pricing in moderate disruption but warned that escalating risks and damage to energy infrastructure could quickly shift sentiment.
Read the full transcript below:
LINDSAY: Well, higher oil prices are weighing down the market once again, as efforts to end the war in Iran show few signs of meaningful progress. Let’s get some perspective from Yung-Yu Ma, chief investment strategist at PNC Financial Services Group. It’s great to have you join us this morning. Good morning.
YUNG-YU: Thanks, Lindsay. Good morning. Great to be here.
LINDSAY: I wonder what you make of it. Every day, it seems like we’re waking up to a different reaction from the markets this week. Do you think the markets are underestimating the risk of a more severe disruption to global energy supplies?
Iran and the United States hardened their positions as a diplomatic push for a ceasefire in the Middle East war appeared to falter on Thursday.
Asian stocks traded lower and oil prices rose back to around US$100 per barrel on Thursday as a de-escalation of the Iran war remained uncertain.
Crude oil prices have dipped slightly amid hope for an easing of conflict in the Middle East, but remain far above prices before the United States launched its attack against Iran.
Hopes for a possible end to the war with Iran pushed stocks higher on Wall Street Wednesday, while oil prices eased.
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