Oil prices would soar to $150 and market volatility would skyrocket in the most severe scenario for the Israel-Hamas war, EY chief economist says

Business Insider (10/23/2023)
  • In a potential worst-case scenario of the Israel-Hamas conflict, EY’s chief economist Greg Daco warns of soaring oil prices reaching $150 a barrel by late 2023 and crash major stock market indexes by 20%.
  • The spike in energy prices and falling markets could also reduce global GDP by 1.4%, or $2 trillion.
  • This “uncontained” scenario would involve the US and/or Iran getting directly involved.
  • Daco predicts this worst-case scenario would be short-lived, with oil prices falling back to current levels by late 2024.