Price Bubble Bursts as Hormuz Remains Open

Sunday’s US bombing of Iranian nuclear sites was the dreaded spark that many feared would set off a regional conflagration. It ended up being more like a storm in a teacup, at least as far as markets were concerned. Iran retaliated with measured strikes on a US air base in Qatar during market hours on Monday and left shipping in the Strait of Hormuz well alone. “It’s like nothing ever happened,” said one trading source. Global price-peg Brent had struck a six-month high of $81.40 per barrel when markets opened Monday — when traders still feared the worst — but soon retreated. It finished the week down $11.12/bbl at $67.73/bbl Thursday — back to levels seen before Israel began targeting Iran on Jun. 13.