Oil Prices Hold Breath Amid Israel-Iran Standoff

Oil prices remained steady as markets awaited Israel's response to Iran's attack, with West Texas Intermediate hovering around $85 a barrel. Amid risk-off sentiment and a stronger dollar, commodities saw little change, fluctuating within narrow margins.

Israeli officials asserted the necessity of a response to Iran's weekend strike, despite international efforts urging restraint. The Middle East, a significant crude supplier, faces heightened geopolitical tensions, contributing to volatility in the oil options market.

Bullish calls on Brent crude are at a premium, reflecting market concerns, while the volume of contracts anticipating higher prices hit a new high. However, experts suggest that unless attacks escalate or disrupt oil production, the impact on prices may diminish gradually.

Additionally, indications from a South Korean refiner suggest potential challenges for crude's upward momentum, with plans to lower operating rates due to recent oil price gains. These developments underscore the delicate balance in oil markets amid geopolitical uncertainties.

Also Read: Tensions Between Iran and Israel Roil Oil Markets: Traders Gauge Geopolitical Risks