

Will he or won't he?
Jun 19, 2025
Global oil prices are in turmoil, influenced by U.S. involvement in the Israel-Iran conflict. Experts discuss how geopolitical tensions affect production and market stability. Meanwhile, Thailand grapples with economic uncertainty, facing challenges in construction and manufacturing due to steep U.S. tariffs. Insights from industry professionals reveal the potential impacts on agriculture and exports. Amid this volatility, there’s cautious optimism over possible trade deals with the U.S., though uncertainties remain high.
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Oil Price Reacts to Strait Risks
- Oil prices rise with worries about closing the Strait of Hormuz, a key oil shipping route.
- Actual disruptions haven't occurred yet, so oil prices reflect fear more than reality.
Energy Prices Drive Economy
- Energy prices are fundamental inputs to the global economy and affect prices of many goods.
- Economic growth can be seen as energy transformed into value and goods.
US and OPEC Ease Supply Concerns
- Increased US oil production and higher OPEC output have improved global energy supply.
- This somewhat offsets Middle East risks and supports lower oil prices despite geopolitical tensions.