Regional Oil & Gas: Keep a Vigilant Eye On Middle East Tensions
New sanctions that the US imposed against Iran are limited in scope and target specific individuals and entities. We believe the sanctions do not affect the nuclear deal that the six world powers and Iran agreed to last year. This therefore does not affect Iran’s oil production and exports at the moment. However, heightened tension and any threats of confrontation in the Strait of Hormuz could place a premium on crude oil prices. In addition, OPEC & non-OPEC’s production-cut deal may see historic high compliance levels. We maintain our OVERWEIGHT stance on the oil & gas sector.