MUFG’s Hardman and Lockhart report that Brent Oil prices have shown a muted response to renewed US–Iran military exchanges, trading near recent lows after briefly dipping below USD 90 per barrel. They argue that market pricing reflects confidence that geopolitical fallout will be contained, even as Iran vows to respond to any attacks or threats.

Geopolitical tensions but subdued Brent pricing

"The main development overnight was the announcement from the US that it has carried out retaliatory military strikes against Iran."

"The choice of language suggests that the U.S. is seeking to contain the renewed confrontation with Iran."

"The initial market response to renewed military strikes between Iran and the US has been relatively muted suggesting confidence that the fallout will be contained."

"The price of Brent crude oil continues to trade close to recent lows after briefly falling back below USD90/barrel yesterday."

"Iran’s Foreign Minister Abbas Araghchi posted on social media that they “will leave no attack or threat unanswered”."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)