The New York Times reports:

Western companies that pump and process oil and natural gas are among the biggest beneficiaries of the war with Iran, which has snarled production and shipping of fuels in the Persian Gulf.

But even as many of them reap the rewards of much more expensive energy, executives are worried that what comes next could be bad for business.

Should the war end — a possibility made real when President Trump said on Monday that the United States and Iran had “very strong” talks about ending hostilities — prices could tumble. If oil and gas prices quickly returned to levels that prevailed at the end of last year, many companies would have to go back to worrying about trimming budgets and laying off workers.

If, on the other hand, attacks on energy infrastructure intensify and it remains too dangerous for most ships to carry energy out of the Persian Gulf, prices most likely will keep climbing. That, over time, will lead governments, businesses and consumers to find ways to use less oil and gas — and some of those changes could permanently reduce demand for the fuels. [Continue reading…]