Oil Price Surge Shows Markets Were Too Relaxed About Iran Deal

AI Summary

Oil prices surged to a two-week high following attacks on commercial ships near the Strait of Hormuz and renewed concerns over the U.S.-Iran nuclear deal. Analysts believe markets underestimated risks to oil flow and regional stability.

Wednesday’s jump in oil prices to a two-week high suggests that market participants were too complacent about the U.S.-Iran ‘deal to make a deal’ and that the ceasefire would hold and oil flows through the Strait of Hormuz would only increase, analysts at ING said on Thursday. Oil prices surged by over 5% on Wednesday, gaining 7% at one point to a two-week high, after the escalation in the region. The Iranian attacks on three commercial ships on Tuesday, including an oil tanker and an LNG carrier, have prompted some…