U.S. crude oil and Brent finished out the week 3% lower despite the fact that Iran and Israel traded direct strikes against each other.Investors seem to believe that Israel's limited retaliatory strike gives Iran an off ramp to refrain from counterattacking.
U.S. crude oil and global benchmark Brent finished out the week about 3% lower, despite the fact that Iran and Israel traded direct strikes against each other's territory for the first time. Fears that oil prices could The market has essentially erased the risk premium associated with the Iran-Israel tensions after traders bid up prices last week on war fears."Traders aren't buying that either Israel or Iran is actually interested in escalating the tensions and are merely engaged in largely symbolic, face-saving exercises," said Manish Raj, managing director at Velandara Energy Partners.
But Iran intended for the missiles and drones to do significant damage, said Tom Donilon, who served as former President Barack Obama's national security advisory. The Islamic Republic simply did not anticipate that the coalition's air defenses would prove so effective at shielding Israel, Donilon said.