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

Crude oil prices rose 6% on March 2 following U.S. and Israeli attacks on Iran, but analysts say the market reaction has been surprisingly muted given that the Strait of Hormuz—through which 20% of global oil and gas flows—is essentially closed. Energy experts warn prices could spike significantly higher if oil shipments don't resume by week's end, with the key bottleneck being third-party insurers' reluctance to cover tankers transiting the strait.