Global oil markets are underestimating the supply disruption from the US-Israeli conflict with Iran, according to Jeff Currie of Carlyle Group Inc. The former Goldman Sachs commodity chief described the current energy market turmoil as the "mirror image of Covid," suggesting the scale of disruption could rival the pandemic's impact on energy prices.

Currie's assessment signals a significant market mispricing, with oil futures failing to fully account for potential Iranian production losses. The comparison to Covid-19 underscores the severity of the situation, as the pandemic previously caused historic demand destruction and price volatility. Energy traders may need to reassess their positions as geopolitical tensions continue to escalate.

The warning comes as oil markets remain volatile amid ongoing Middle East tensions. Currie's track record in commodity analysis lends weight to his assessment, potentially prompting institutional investors to reevaluate their energy sector exposure. Market participants should prepare for continued price swings as the situation develops.