Iranian Attack’s Moderate Impact on Oil Prices Surprises

Four days after Iran’s massive attack on the Jewish State and primarily in anticipation of a “response” from Israel, oil prices reacted barely if at all. Indeed, prices turned around and fell for several days in a row. A string of dips was recorded throughout the day on Wednesday, April 17, with prices of futures for June delivery of benchmark Brent crude losing 1.53% in the afternoon, falling to $88.64 per barrel. Texas Intermediate WTI Crude also lost 1.43%, while the May 2024 contract was quoted at $84.19 per barrel.

According to analysts, Brent and WTI crude oil prices managed to avoid significant gains after the Iranian response to Israel, and in recent hours they have been retreating beyond the support thresholds set at $90 and $85 respectively, apparently triggered by a correction that could continue to target prices estimated by traders at $88 and $83.5 per barrel.

The European Central Bank (ECB) is also closely monitoring the oil market situation and will continue to monitor the oil price trend “very closely” in light of possible negative impacts caused by tensions and conflicts in the Middle East. ECB President Christine Lagarde told US broadcaster CNBC on the sidelines of the spring meetings of the International Monetary Fund (IMF) and the World Bank in Washington, DC that “so far, the price reaction to the attack launched by Iran against Israel last weekend has been quite moderate.”