Wald: Middle East Risks Keep Oil's Risk Premium Elevated

Ellen Wald, president of Transversal Consulting and nonresident senior fellow at the Atlantic Council Global Energy Center, explains why she sees no recent move by the president that could materially bring down oil prices. She notes that short-lived dips driven by statements or social media have not lasted, and the market has largely shed expectations that the conflict will soon end. Wald says oil-market buffers built up over the prior six months are nearly exhausted, while reported oil flows through the Strait of Hormuz remain a critical concern. Wald emphasizes that the risk premium in oil prices is likely to persist as long as Middle East tensions remain high. She points out that the market has become desensitized to headlines, but the underlying risks have not diminished. The exhaustion of oil-market buffers means that any supply disruption could have an outsized impact on prices. Wald also discusses the potential for further escalation and its implications for global energy security. This analysis provides valuable context for investors and policymakers seeking to understand the factors driving oil prices. Wald's insights highlight the importance of monitoring geopolitical developments in the Middle East and their potential to affect energy markets. The video is part of Bloomberg's ongoing coverage of global energy and politics.