Why does HSBC Chair Brendan Nelson say a Middle East peace deal is essential for global energy flows?

Brendan Nelson stated that a Middle East peace deal is 'essential to ensure a substantial resumption of global energy flows' because ongoing conflict—particularly the Iran war—has caused oil prices to surge and remain near $100 a barrel, driven by investor concerns over prolonged tensions in the Strait of Hormuz, through which one-fifth of global oil and gas typically passes.

What are the economic risks Nelson highlights if the Strait of Hormuz remains disrupted?

Nelson warned that continued disruption would amplify indirect effects from higher energy costs, leading to rising inflation and depressed global growth; he urged caution toward current global growth, trade, and inflation projections since the full impacts of the Iran conflict remain unclear, and noted that the U.S. Navy's blockade—following failed weekend peace talks—makes a swift reopening unlikely.

HSBC Chair Says Middle East Peace Deal Needed to Restore Global Energy Flows

Apr 13, 2026

HSBC Chair Brendan Nelson warns that Middle East conflicts threaten global energy flows, keeping oil prices near $100 per barrel. Analysts estimate 10 million barrels daily are removed from the market, raising inflation risks and depressing economic growth.

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