Iran Deal Shock Is Only Half of the Oil Price Story: Chart

(Bloomberg) -- Oil prices have risen 14 percent this year -- half of this increase reflects stronger global demand, a Bloomberg Economics model suggests. The rest is probably due to heightened tensions with Iran and other supply shocks. The return of U.S. sanctions could crimp Iranian oil exports, but the global supply shock might be mitigated by increased pumping elsewhere, according to the analysis.

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