Oil prices fell following the recent wave of Iranian attacks, yet markets responded differently than might have been expected.
Market Reaction to Iran's Attacks
Market sentiment shifted after Iran launched missile strikes on military targets in Qatar and Iraq. Brent crude prices fell nearly 6%, settling at $71.11 per barrel within hours of hitting $81.40.
Expert Analysis on Iran's Actions
According to Michael Alfaro, chief investment officer at Gallo Partners, Iran's moves were 'well telegraphed,' signaling that the country is 'less likely to weaponize oil.' Experts compare current events to January 2020 when Iran also targeted U.S. bases.
Political Reaction and Price Implications
Despite the sharp drop in oil prices, U.S. President Donald Trump urged oil companies to increase production. He stated, 'Everyone, keep oil prices down. I’m watching!' However, experts note that presidential options are limited.
In the current situation, markets are closely monitoring Iran's actions, which, by not targeting oil routes, demonstrate strength without threatening oil prices.
