Oil Prices Remain Stable Despite Iran War

Oil prices avoid jumping to $200 amidst Middle East tensions.

• Oil prices have not reached $200 despite Middle East tensions.
• Coordinated inventory withdrawals helped stabilize prices.
• Return of Russian supplies aided market regulation.
• Alternative routes used to bypass Strait of Hormuz closure.
• Expectations of price increases if the war continues.

Despite the increasing tensions in the Middle East, including the U.S.-Israeli war on Iran and the closure of the Strait of Hormuz, oil prices have not reached $200 per barrel as expected. On the contrary, prices have remained within a less volatile range, reflecting the global market's ability to absorb shocks rather than explode.

Since February 28, the date the war broke out, oil prices have fluctuated within a variable range. Brent crude reached its highest levels at around $119 per barrel by the end of March, while prices fell during periods of calm to below $90, with an average hovering around $100. Meanwhile, the price of light Arab crude surpassed $140 per barrel.

Event Details

Many experts had predicted that oil prices would reach $200 under the current circumstances. For instance, Rory Johnston, founder of the

What factors contributed to the stability of oil prices?

Inventory withdrawals, return of Russian supplies, and alternative routes.

How do these prices affect the Arab economy?

They impact both producing and consuming countries, potentially altering their economic strategies.

Can prices reach $200?

This is possible if new supply shocks occur.