Middle East Crisis Oil Market

Oil prices withstand prolonged war – but risks increase

It has been more than three months since Iran closed the Strait of Hormuz, stopping a fifth of the world's oil from passing through. But the worst prophecies of an oil price of 200-300 dollars a barrel have not yet come true, writes Bloomberg.

The reason is a combination of factors. For example, there was a surplus of oil before the war broke out. Record-high American exports and subdued demand from China have also helped to keep oil prices down.

- Just over three months into this conflict, the world has proven surprisingly resilient, says Maria Angelicoussis, CEO of the Greek shipping company Angelicoussis.

At the same time, the market becomes more vulnerable as time goes on. If China's demand were to increase again, while the strait remains closed, oil prices could rise sharply.

Oil Prices Rise: “Again Taking Risks into Account”

Oil prices are rising more than 4 percent after Iran fired missiles at Israel, and Israel responded in kind.

Early Monday morning, fuel oil was trading at just over $95 a barrel. North American WTI oil was also trading above the $90 mark.

The new attacks show how fragile the ceasefire in the Middle East is, writes CNBC.

Jiajia Yang, associate professor at James Cook University in Australia, tells the BBC that it is too early to say whether the attacks mean a full-scale escalation of the war.

– But investors are once again taking risks in the global oil market.