The ‘oil shock is not over’, says CBA geo-economic analyst | The Business | ABC NEWS
Commonwealth Bank geo-economic analyst Madison Cartwright says even though the US has struck a ceasefire with Iran that will be signed on Friday, the oil shock is not over. He said we need “to wait and see how the opening of the Strait (of Hormuz) progresses, how quickly traffic can get through” and how insurance for shipping will work. Oil prices sunk to a three-month low on reports the US will allow Iran to start selling oil again in a major roll-back of economic sanctions.
After a speech from the Reserve Bank’s assistant governor (financial), Brad Jones, where he said there is evidence the international financial system is fragmenting upon geopolitical lines, Mr Cartwright said countries need to look at economic security and understand that interconnectedness is creating avenues for weaponisation.
He says the global economy has run off a series of standards and norms that are changing and businesses can longer take them for granted. “We just need to be thinking a bit more critically about where vulnerabilities may lie, and things that we took for granted … are becoming more dubious.”
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