Shorts in the oil market are likely holding on to their positions, taking the view that Iran ultimately doesn’t matter for the crude market.
A lot can happen in a weekend, but the markets are taking a sanguine view for now that the conflict with Iran and Israel - now with the US’s involvement after its bombing of Iran’s nuclear facilities - will not deteriorate. Stocks are up, yields are up, but only marginally, and the dollar is up, but again, not significantly so far (+0.6%).
