Markets ‘completely wrong' on Iran war, oil could hit $200 a barrel: Economist

• Military buildup and failed negotiations point towards an escalation of conflict with Iran, not de-escalation.
• Markets are mispricing the risk, currently pricing 'no war,' which is baffling given the geopolitical landscape.
• Oil prices, especially in Asian markets, could surge to $150-$200 per barrel or more, due to supply problems and a previously uncounted geopolitical risk premium in the Strait of Hormuz.

An economist warns that financial markets are 'completely wrong' in underpricing the risk of a military conflict with Iran, which he believes is increasingly likely. This escalation, coupled with existing supply issues, could drive oil prices to $150-$200 per barrel or higher, potentially pushing the world towards a global recession.