"For more than a week after the United States and Israel's initial attack on Iran, oil prices stayed relatively calm-even as bombs rained down in the Middle East and the war expanded to neighboring countries. When Iran announced that it would attack any ship passing through the Strait of Hormuz, that all-important passage for the global oil trade, energy markets ticked up only slightly."
"The price of a single barrel, which had climbed roughly 20 percent over the course of last week, jumped from about $92 on Friday afternoon to $119.50 on Sunday-a nearly 30 percent gain. It has since tumbled back down to about $90 at the time of publication, likely owing to President Trump's comment to CBS earlier today that the war is 'very complete.'"
"As financial markets have grown accustomed to Trump's erratic decision making, they have begun to process his moves more slowly than they used to. Traders have navigated the administration's sudden interventions abroad with relative steadiness, assuming that the instability in those countries would be short-lived."
Following U.S. and Israeli attacks on Iran and subsequent regional escalation, oil markets remained relatively stable initially despite threats to the Strait of Hormuz. However, panic emerged by Sunday trading, with crude prices jumping from $92 to $119.50 per barrel—a 30 percent spike—before retreating to $90. The volatility reflected market uncertainty about potential disruptions to global oil trade. President Trump's conflicting statements about the conflict's status and the G7's coordination on mitigation strategies influenced the price correction. Financial markets have grown accustomed to Trump's unpredictable decision-making, processing geopolitical interventions with increasing caution, though experts note this situation differs significantly from previous regional crises.
Read at The Atlantic
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