Oil prices remain steady despite heightened geopolitical tensions in the Middle East following U.S. airstrikes targeting Iranian military facilities. Global traders are adopting a wait-and-watch approach as Iran is yet to issue an official retaliatory response, leaving markets in a temporary state of calm.
Crude benchmarks held firm on Monday morning. Brent crude hovered around $85.60 per barrel, while West Texas Intermediate (WTI) stayed near $81.20. Analysts say the stability suggests investor restraint despite the underlying risk of escalation in the region.
Market Weighs Potential Fallout
Traders are closely monitoring signals from Tehran. The lack of immediate military retaliation by Iran has helped calm nerves for now, although rhetoric from Iranian officials hints at a potential delayed response.
Energy experts say the market is pricing in geopolitical risk without fully reacting to it. “We are in a fragile window,” said an oil strategist at a leading investment firm. “The next 48–72 hours are crucial. A sharp move by Iran could send prices surging overnight.”
So far, no disruptions to oil supply or exports have been reported. However, shipping activity through the Strait of Hormuz—a vital chokepoint for global oil remains under heavy surveillance.
OPEC+ Remains Silent as Tensions Rise
While the United States reinforced its position on defending its assets and allies in the region, OPEC+ members have refrained from issuing any formal statement. Industry watchers believe OPEC nations are cautious, trying to avoid any statements that might further shake the market.
OPEC’s silence is also seen as a tactic to prevent oil prices from swinging wildly on sentiment rather than fundamentals. “The silence from OPEC+ may be strategic,” noted a commodities analyst. “They don’t want to add fuel to a potential fire.”
Meanwhile, major oil importers such as India and China are assessing the situation carefully to plan for any supply contingencies in case of escalation.
Investors Hedge but Avoid Panic
Despite the geopolitical backdrop, there is no major rush toward safe havens like gold or U.S. Treasury bonds signaling a measured response from the broader financial market. Instead, some investors are entering hedging positions to safeguard against a possible oil supply shock.
The U.S. Department of Defense has emphasized that its strikes were defensive and pre-emptive, targeting threats linked to Iranian-backed militias in the region. However, with Tehran’s history of asymmetric retaliation, markets remain on edge.
Conclusion
As the oil market treads cautiously, the world waits for Iran’s next move. Investors are preparing for all scenarios—ranging from diplomatic dialogue to a new round of confrontations. Until a clear response emerges, oil prices are likely to hover in a narrow range, reflecting both caution and uncertainty in equal measure.
