Pulkit Agarwal warns oil could reach $200 per barrel
Business
Oil prices might skyrocket to $200 a barrel if tensions in the Strait of Hormuz don't ease up soon, says Pulkit Agarwal from S&P Global Energy.
After U.S.-Iran talks fell apart, ship traffic in the area dropped from 150 vessels to barely a handful, causing a major oil supply crunch: about 10 million barrels a day short.
India and China face oil shortages
India and China are especially struggling to get enough oil as supplies run low and prices climb, making it tough for factories and refineries to keep running.
Agarwal points out that when oil gets this pricey, people simply use less.
If things calm down, though, he thinks prices could settle around $100 by May—or even drop to $80 if diplomacy wins out.
For now, everyone's watching how this plays out.