Oil Markets Complacency

Is it Misplaced?

Oil markets have returned to a precarious calm after a strong initial reaction to the Israeli attack on Iran. Oil prices (West Texas Intermediate, WTI) surged by 20% on Friday, but have declined somewhat since, as traders seem to be reassured that the war will not impact global energy markets at least in the short term. Nevertheless, at $72.98/barrel (bbl), WTI is at six-months high and still 12% higher than its pre-war level on June 10.