If the United States tightens sanctions on Iran, analysts at Commonwealth Bank of Australia (CBA) estimate that about 0.5-1.0% of global oil supply may be affected, which would push Brent crude oil prices above $100 per barrel.
A further risk is whether Iran will try to disrupt oil shipments through the Strait of Hormuz, through which 15-20% of the world's oil supplies pass.
The continued rise in oil prices will have a negative impact on inflation, but it will also impose a burden on consumers, so the impact on interest rates is not direct.
A further risk is whether Iran will try to disrupt oil shipments through the Strait of Hormuz, through which 15-20% of the world's oil supplies pass.
The continued rise in oil prices will have a negative impact on inflation, but it will also impose a burden on consumers, so the impact on interest rates is not direct.