The sudden, explosive conflict between Iran and Israel that send shockwaves through global markets seems to be on pause right now. Following Israel's retaliatory missile attack on Iran's Isfahan region, Tehran hasn't shown any immediate interest in further escalating the conflict between the two longtime rivals. As a result, some of the risk premium has deflated out of the oil market this week, with June-dated crude futures (CLM24) settling Monday's session more than 4% below last Friday's high.
However, with economic data still pointing to a strong U.S. consumer, and the Russia-Ukraine war raging on, forecasts for energy demand more broadly remain robust.
