The tweet was deleted by the author.
But we saved everything 🙂.
Oil prices could have surged further, according to Mohamed A. El-Erian, if markets were open this weekend. In a tweet, El-Erian noted that both sides in a current conflict signaled willingness to directly target oil infrastructure, a move he describes as crossing a significant red line.
He suggests that, had markets not been closed, the economic and financial headlines would be highlighting this increased risk to oil prices.
El-Erian's warning regarding heightened volatility in oil markets aligns with his previous analysis of market dispersion, where shifting investor focus has driven asset class divergence to levels unseen in decades. His continued attention to structural risks, such as the implications of a flattening U.S. yield curve, further underscores the interconnected vulnerabilities that can amplify shocks across global financial systems.