Middle East Conflict: Why No Oil Crisis? | JQJO

Despite initial price spikes following Israel's attack on Iran, global oil prices have remained relatively stable, defying expectations of a crisis. Several factors contribute: Iran hasn't targeted oil supplies or blocked the Strait of Hormuz; oil traders are less reactive to geopolitical events after repeated false alarms; autumn's lower oil demand; global oil oversupply; and the US's significant oil production capacity. The US, the world's largest oil producer, can rapidly increase production if needed, mitigating supply disruptions.