Oil Market Dynamics Amidst Conflict

This chapter analyzes the impact of recent airstrikes on Iran and their immediate effects on crude oil prices, reflecting a typical 'buy the rumor, sell the news' market behavior. It explores the geopolitical implications of U.S. military actions, particularly regarding the Strait of Hormuz and China's role in crude imports, while contextualizing these developments within the historical framework of oil flow disruptions during conflicts. Additionally, it addresses the rising freight rates for Very Large Crude Carriers and the evolving dynamics of U.S.-China crude oil trade amidst these tensions.