Elliot Hentov, chief macro policy strategist at State Street Global Advisors,
said renewed escalation in the Middle East is unlikely to fundamentally alter
the market outlook. Since April there has been little new evidence on either
side’s willingness to escalate; neither side appears to seek a full resumption
of hostilities, so the conflict may eventually subside. In SSGA’s spring war
scenario the firm assumes Brent crude near $80/bbl for the remainder of the year
to reflect residual risk under any ceasefire.
