Why did oil prices rise so little? Market awaits Iran's response

Since the escalation of the conflict, i.e. Israel's attack on Iran, the prices of this raw material have increased by about $ 10 per barrel of Brent . And the concerns are primarily about supplies in the near term, not in the longer term. Although a third of the world's oil supplies come from the Middle East, there are no signs yet that its transport has suffered due to the escalation of the conflict and American interference. Oil is still being transported through the Strait of Hormuz without any disruptions. Although analysts indicate that in the near future they may be reduced by as much as half, this is due to risk aversion and a sharp increase in freight prices, not physical obstacles. Everyone is only talking about risk, and this is what is driving up the prices of the raw material.

— Dealers have been holding their breath, watching to see if Israel and Iran will escalate the conflict from a military to an energy option. So far, no one has. And if they do, I predict prices will start to fall, Bob Nally, founder of Rapidan Energy Advisers LLC and former top White House energy adviser, told Bloomberg on Monday morning.

Why are Iranians refraining from responding?

For now, apart from sporadic rocket fire into Israeli territory, the Iranian side is in a war of words. Amir Saeid Iravani, Iran's ambassador to the UN, announced that the decision on the timing and scale of his country's response to the Israeli and American attacks will be made by the armed forces. However, if the conflict escalates again, Iranian oil exports will also suffer, something the government in Tehran definitely wants to avoid.

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