How oil markets are reacting to Iran's attack on Israel
Oil markets shrugged off rising tensions in the Middle East after Iran launched a barrage of missiles and drones at Israel over the weekend. Prices of international benchmark Brent crude oil fell about 1% to $89.49 a barrel on Monday morning.So far there has been relief because the long-awaited attack caused little damage and had no effect on supplies. Oil prices had already risen substantially in the days before the assault, surpassing the symbolic level of $90 a barrel last week.There is a sense in the market that prices are higher than would be justified based on supply and demand fundamentals. In a note after Saturday's Iranian assault, Goldman Sachs estimated this risk premium at between $5 and $10 a barrel.Rystad Energy, a consultancy, calculates that, based on fundamentals, B...