Energy markets are now “clearly in the crosshairs” of the Iran conflict, according to RBC Capital Markets, which warns of oil prices into the $100s per barrel if fighting and disruption persists. In a new commodities note on Iran flashpoints, the bank says the Strait of Hormuz is effectively closed after vessel attacks and the withdrawal of war risk insurance.
The U.S.-Israel war on Iran has disrupted oil and natural gas exports from the Middle East and forced production stoppages from Qatar to Iraq.
The oil markets are on fire again for early Tuesday trading, as the reaction to war in the Middle East is about what you would expect.
Tensions grow in the Middle East with Iran retaliating against the U.S. strikes that killed Iran's leader. Kevin Green points to crude oil's surge Tuesday morning and a spike in the VIX as key components to the start of a sharp downside market move.
America's attack supports the case for U.S. assets. It's also bullish for Iran.
Oil prices rose to their highest in more than a year as traders continued to fret that supplies will be affected by conflict in the Middle East.
The cost of hauling crude oil from the Middle East to China has skyrocketed as the conflict between the U.S. and Iran disrupts shipping through key routes in the region. Leading maritime insurers have also dropped war risk cover for vessels operating in the Persian Gulf.
Indonesia will increase crude oil imports from the United States to replace some supply from the Middle East amid an escalating war in the region, its energy minister said on Tuesday.
Oil rose in the morning Asian session as the ongoing Middle East conflict kept supply disruption risks elevated.
India, a fast-growing oil consumer, is the country most vulnerable to crude supply shocks if the Middle East conflict leads to a prolonged disruption in shipments from the region, mainly because of its thin reserves, analysts said.
A rally in energy and tech stocks helped the S&P 500 rebound from an early 1.2% drop to finish up less than 0.1%. Brent crude moderated an early double-digit surge to a 6.7% climb.
Arab–Israeli war in 1973 and the oil embargo that followed shows that stocks don't always rebound quickly.