Middle East tensions have diminishing impact on oil prices — Reuters

The moderate oil price swings during the Middle East conflict highlights growing energy market efficiency and signals fundamental shifts in crude supply dynamics, Reuters reports.

According to the news agency, Brent crude prices rose from below $70 to $81.40 per barrel between June 12–23 following US administration intervention in the Middle East conflict. However, oil prices dropped the same day as Iran’s retaliatory measures were perceived as de-escalatory, with crude retreating to $67 per barrel.

The scenario of Iran closing the Strait of Hormuz failed to materialize. In fact, almost no Middle Eastern oil supply disruptions occurred throughout the conflict. Moreover, as Reuters notes, market reactions to such events have progressively weakened.

Experts surveyed by the news agency attribute limited oil price movements to multiple factors, including the development of alternative export routes and the Middle East’s declining share of global crude supplies.