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.
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