Iranian flags fly as fire and smoke from an Israeli attack on Sharan oil depot rise
The oil risk premium fable
Israel’s attack on Iran caught oil firms with low inventories due to their efforts to protect themselves from falling prices, creating a perfect storm
Israel’s attack on Iran in mid-June began yet another oil market disruption, and firms were caught with their stocks down. Traders had accumulated substantive positions in options. For a precedent as to how the market reacts to such circumstances, one can look to the summer of 1990, when Iraq invaded Kuwait, or the early months of 2022 after Russia attacked Ukraine. Whether the disruption persists or dissipates will depend on developments in the Middle East. It could diminish if the two parties pull back, or it could worsen should Israel damage Iran’s production facilities or should Iran strike other producers in the Mideast Gulf. So far, the resulting increase in price volatility dictated t
Also in this section
21 April 2026
After overcoming a COVID-induced demand collapse with several years of successful market management, geopolitical events have conspired to provide the pact’s biggest test to date
21 April 2026
The regime’s policy of using nuclear ambiguity as a deterrent may have failed but it has realised it has other cards to play, while its neighbours are reappraising their approach to security
21 April 2026
As the global energy system undergoes a fundamental realignment, Algihaz Holdings has established itself as a critical player bridging conventional energy markets and the next generation of renewable infrastructure.
21 April 2026
The 25th WPC Energy Congress is taking place from 11-15 October 2026 at the Riyadh Front Exhibition & Conference Center.
