Paul Tudor Jones, founder and chief investment officer of Tudor Investment, expressed his bullish outlook on oil prices during an appearance on CNBC's 'Squawk Box.' He believes that the current geopolitical tensions between the U.S. and Iran will drive oil prices higher, potentially exceeding $113 per barrel, which is the previous closing high for 2026.
As of Tuesday morning, West Texas Intermediate crude futures were trading around $92.50. Tudor Jones noted that if oil prices were to rally, it could create challenges for the equity market, although the S&P 500 managed to withstand earlier price increases following the onset of the U.S.-Iran war.
He highlighted that while oil prices surged after the conflict began, they experienced a decline in June before rising again in July due to escalating tensions in the Middle East. Tudor Jones also pointed out that 2027 may pose difficulties for the stock market due to increased equity supply from major tech IPOs.
He speculated that President Trump might pursue peace initiatives after the midterm elections, suggesting that the current situation is unsustainable in the long run