"Allianz Trade Warns of Potential $140 Oil Amid Middle East Crisis"

Allianz Trade has warned that crude oil prices could surge to $140 per barrel, potentially triggering a global recession. The Paris-based company cited escalating tensions in the Middle East, particularly between Israel and Hamas, as a potential catalyst for the price surge. Ana Boata, head of economic research at Allianz Trade, stated that higher oil prices could lead to a slowdown in global growth, with central banks adopting a wait-and-see approach before cutting interest rates. While this scenario is not the baseline projection, Boata estimated a 20% probability for this downside scenario.