After the U.S. attacked Iran, the oil market faced more uncertainty.

Gate News bot reported that, according to Bloomberg, the U.S. weekend attack on Iran has increased the risk to global oil supply, and so far, global oil supply has not been impacted by some of the most extreme military actions in the Middle East in years.

After U.S. President Donald Trump stated that airstrikes had "destroyed" three major nuclear facilities in Iran, Brent crude oil prices surged in early trading on Monday, exceeding $80 per barrel for the first time since mid-January. Subsequently, Brent crude oil prices retraced gains as the crucial Strait of Hormuz remained open to tankers.

Analysts are currently trying to weigh the rising geopolitical risks against previous concerns that strong production and a sluggish global economy could lead to an oversupply.

Bob McNally, president and founder of the Rapidan Energy Group and former White House energy official, stated that Iran may be very cautious in disrupting the Strait of Hormuz. The Strait of Hormuz is a narrow passage between Iran and the Arabian Peninsula through which approximately 25% of the world's oil and 20% of liquefied natural gas must be transported.

Macknally stated on Bloomberg TV: "Traders are holding their breath, waiting to see if Israel or Iran will expand this conflict from military and political objectives into the energy trading space. So far, no one has pulled the trigger. If they don't, I expect prices to reverse."

Harry Tchilinguirian, Head of Oil Research and Analysis at Onyx Commodities Ltd., who has long been engaged in the oil market, expressed particular concern over whether Iran would take the risk of targeting U.S. military assets or energy infrastructure in the region as a response, thereby dragging the U.S. into a deeper conflict that could drive up oil prices. If Iran's response is limited to Israel, then concerns about an escalation of the situation may ease.

Harry said: "Basically, the ball is now in Iran's court, and a response must be made. Although Iran has stated that all options are on the table, some options are more important than others."

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