Oil prices are rallying in response to the geopolitical tensions unfolding in the Middle East. President of Rapidan Energy Group Bob Mcnally joins Yahoo Finance Live to discuss how these developments could impact markets.
McNally emphasizes that the "real bullish oil market risk" is centered around Iran. He notes that traders had "shrugged off" the risks from this region since November. However, following an Israeli attack in the region this week, McNally says the markets are now starting to price in "the big one."
As oil prices have risen above the $90 level, McNally acknowledges this could be a "concern." However, he points out that with the Federal Reserve "worried about inflation," oil prices at this level could lead to worries about inflation spiking within consumer goods like gasoline— potentially slowing down the pace of future Federal Reserve rate cuts.
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