Energy markets offer ‘relatively small reaction’ to Iran war, but prices could spike if oil and gas aren’t flowing by the end of the week

Energy markets offer ‘relatively small reaction’ to Iran war, but prices could spike if oil and gas aren’t flowing by the end of the week

Crude oil prices jumped 6% on March 2 following U.S. and Israeli attacks on Iran and regional escalation, but analysts say the market reaction has been surprisingly muted given that the Strait of Hormuz—critical for 20% of global oil and gas exports—is essentially shut down. Prices could spike significantly higher if oil flows don't resume by the end of the week, with the market currently betting that the U.S. will secure the strait and restore energy shipments.