The already fraught geopolitical situation in the Middle East flared up over the weekend. With no resolution forthcoming in the Israel-Hamas war, tensions are now escalating between old foes Iran and Israel. Having long engaged in a proxy war, a suspected Israeli attack on the Iranian consulate in Syria prompted a retaliatory strike by Iran over the weekend, as Tehran launched over 300 drones, and missiles, marking the first-ever direct attack on Israeli territory from Iranian soil.
Oil prices have cooled this morning from Friday's highs, as early analysis suggests the attack by Iran seems engineered to make a point more than to escalate aggressions. Already, though, crude futures (CLK24) were climbing against a backdrop of rising demand on strong economic data and OPEC production cuts. With Middle East tensions now on a razor's edge, oil prices are still lingering near year-to-date highs.
