Oil market reacts to attack on Iran

On Saturday, the US and Israel launched strikes against Iran, which responded, but oil remained silent as trading was closed on the weekend. Experts say the risk premium is already priced in, and oil prices rose again on Friday.

The price of benchmark Brent crude rose from Friday to Friday from $71.5 to almost $73 per barrel. By the end of the week, prices accelerated. The psychology was simple: the market was once again paying for probability, not fact.

Some analysts claim that oil already has a geopolitical risk premium of $8-10 per barrel.

First and foremost, the oil market fears that Iran will attempt to close the Strait of Hormuz, through which 20% of the world's oil passes. However, there is no news yet. The status of Iranian oil shipments to the Persian Gulf is also unknown. According to international news agencies, OPEC+ may consider increasing production on Sunday, March 1, due to the US and Israeli strikes on Iran.