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.

Prepared by Christopher Adams and reviewed by editorial team.