Even after Iran, a major producer of crude oil, attacked Israel with drones and missiles, raising the possibility of larger violence in the Middle East, which is oil-rich, oil prices have not surged. Markets are partially priced in the fallout from Iran’s actions because warnings had been issued before the strike, albeit it’s still unknown how much retaliation will cost. Ole Hvalbye, an analyst at SEB bank, stated that “the attack, which was announced well in advance, resulted in minimal damage as Israeli and allied forces intercepted nearly all projectiles.”
Iran fired around 300 drones, missiles, and ballistic missiles at Israel between late Saturday and early Sunday, but the attacks only slightly damaged any targets, including a military base in the southern part of the nation.
According to PVM Energy analyst Tamas Varga, “the market discounts a possible escalation of the crisis between Iran and Israel.”It thinks any Israeli reprisal will be proportionate, partly because of pressure from the US and other countries to exercise moderation.
Iran wants to keep exporting crude oil, so it will also be cautious not to make things worse, Varga told AFP. US Treasury Secretary Janet Yellen has warned that more sanctions on Iran may be coming.
