Oil prices could spike in the coming weeks if oil doesn't start flowing out of the Strait of Hormuz soon.
Surging oil prices could cause demand destruction and a global economic slowdown.
Oil prices have cooled off over the past couple of weeks due to optimism that the U.S. and Iran are close to a peace deal that would reopen the Strait of Hormuz. Brent oil, the global benchmark price, was recently around $90 a barrel, down from over $110 a barrel in mid-May. While Brent is still up more than 50% on the year, it had almost doubled at one point.
The current respite might not last. Executives of ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX) recently warned that oil prices could skyrocket over the next two months as oil stockpiles continue draining. Here's what that could mean for investors.
