Rabobank’s Global Strategist Michael Every notes that Oil prices were little changed after another sharp Middle East escalation involving Israel and Iran, as markets reverted to an ‘as you were’ stance. Every highlights that the conflict’s ultimate path, especially involving Hezbollah and Iran’s decisions, will be crucial for future energy pricing and broader market sentiment.

Energy markets watch Middle East risks

"After yet another Middle East rollercoaster for markets it’s now ‘as you were’, with oil --so everything else-- little changed."

"That dynamic has huge implications for when and how this war ends, so for energy, so for markets."

"In the background, Yemen’s Houthis claim they will restart a maritime blockade of Israel in the Red Sea, which was applied far more broadly the last time they put it in place."

"Obviously, that can threaten cargo and energy flows at this juncture, as a US Navy F-18 struck and disabled an oil tanker in the Gulf of Oman and the EU hit Iran’s Navy… with sanctions."

"In short, this crisis is far from over, even as Trump says “total victory” will be declared in the next two weeks as Iranian negotiators are “willing to give us everything,” and VP Vance added that the deal being discussed was “a home run” for the US."

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