Why oil prices aren't even higher after Iran strikes

Oil prices have increased due to attacks and counterstrikes, but some experts believe the market isn't reacting strongly enough. Consumers and businesses globally will feel the impact of rising oil and gas prices caused by the conflict. While Brent crude has risen to around $81 per barrel, it hasn't yet reached the $100+ level many anticipate in a prolonged conflict. Veteran analyst Bob McNally sees a disconnect between the risks and current prices, suggesting the market is too relaxed. He points to past geopolitical crises that didn't lead to major oil supply disruptions, causing a "boy who cried wolf effect." Tanker traffic through the Strait of Hormuz, a crucial oil transit point, has significantly decreased. Attacks on energy infrastructure, like the Ras Tanura refinery in Saudi Arabia and Qatar's LNG production, further heighten concerns. McNally predicts oil prices could hit $100 if the Strait remains closed, arguing Iran could disrupt transit longer than expected. The market has previously downplayed geopolitical risks, but the recent events are starting to shift this perspective. Other energy commodities like gasoil and European natural gas are also experiencing price surges. Some analysts predict oil could exceed $100 per barrel in the event of a sustained conflict or significant attacks on Gulf energy facilities.