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Oil Price Will Fall as Iran Tensions Lessen: Blackstone’s Wien

There's an "Iran premium" built into oil prices right now, and as tensions decline, so will that price this year, said Byron Wien, Blackstone Advisory Partners vice chairman.

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Ebrahim Noroozi | AFP | Getty Images

That puts him at odds with many others who see higher prices for the foreseeable future.

"If the Iran situation, the nuclear weapons fear, declines, I think the price of oil can go down. I’m forecasting a decline in the price of oil this year," he told CNBC Tuesday. "I don’t think (the tension) will disappear but I do think it will be less intense than it is right now."

He said there are "terrific opportunities" for investing in energy markets, particularly in the oil services and oil drilling companies that are involved in hydraulic fracturing, or fracking. Fracking "is a game changer," he said, and the companies that are taking advantage of the "considerable deposits" in the U.S. Midwest are going to benefit.

He remains bearish on government securities. "I think the right level, if there is such a thing, for 10-year Treasurys is the equivalent of the nominal growth rate for the U.S.," he said. "So that would be 2 percent growth and 2.5 percent inflation, or 4.5 percent. We’re a long way from there."

He thinks 10-year Treasurys "can reach 3 percent sometime this year" and predicted yields will rise "as people get a greater appetite for risk assets."

Wien's 2012 forecastin January predicted a Standard & Poor's 500 at 1400. Now that it is at that level "and it isn't even the end of March," he thinks "the market can still get to 1500" this year.