Oil was priced Friday without a war premium, what now?With all the recent progress in the ME towards peace and improving relations, oil's war premium had totally vanished from the price.
Just days ago, we were just at $95, then had a technical pullback to the low 80's, which was even a bit overdone.
But just like that, new fighting breaking out in Israel and Gaza will put all the latest efforts to decrease ME tensions on hold, if not stopped altogether.
With such significant Israeli casualties, there will bound to be an Israeli retaliatory response several multiples higher, which will galvanize the Arab world even more, causing much higher threat levels.
High rise buildings in Gaza are being reduced to rubble already as a start. What will be next?
Remember, Saudi and OPEC+ production cutbacks of a mere 1-2 mm bpd help raise oil prices up to $95.
Just what would the price be with the loss of a significant portion of the 21 million bpd of crude that passes through the straight of Hormuz?
Got oil?