Iran Launches Retaliatory Attack on Israel
April 15, 2024
Iran launched a retaliatory attack against Israel over the weekend. Many were concerned that energy markets would jump higher once the energy markets opened trading on Sunday night. The response from the markets have been very muted. Most market analyst are saying that Iran’s attack was in the words of one news outlet, a well-choreographed spectacle intended to cause maximum drama but minimal damage. The damage was limited, and it points to the idea that traders will need to see actual impact to energy assets or impact to supplies or production before prices move higher. Of course, this market has needed a correction lower so without any actual impact from the attack prices could just be continuing to correct and consolidate. The market now has to be concerned with what Israel will do in response. The threat of escalation in the Middle East is rising. Benjamin Netanyahu has to make a delicate decision on how to proceed without creating a broader war. Many countries, including the US, have urged him to exercise extreme caution.
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