Oil steadied after rallying around 10% since Israel started its attacks on Iran last week. Iran's crude-exporting infrastructure has been spared so far, and most of the fallout has been confined to shipping. Bloomberg's Anthony di Paola reports.

Tehran

Oil prices have steadied following a roughly 10% rally that began after Israel initiated attacks on Iran. The increase in prices reflects a risk premium added by traders, but the market is not currently indicating significant concern about disruptions to oil supply. Although some energy infrastructure in Iran was targeted, these were domestic facilities, and Iran's crude-exporting operations remain unaffected. Most of the impact so far has been limited to shipping, and the broader oil market is closely monitoring the situation for signs of escalation that could affect other oil-producing countries in the region.

Oil steadies as Mideast escalation concerns continue

What is your analysis your assessment right now of the oil market adjustments around this with Brent up just just to 10 percent but at 60 76 dollars a barrel in the session today. How much how much risk premium is priced in at this point. Good morning Tom. Yeah I mean what the risk premium that you'll see is that almost 10 percent increase that you've seen that you mentioned since the assault started on Friday the 13th. And we did see a big jump at the start of trading this week when we had those first initial attacks on some energy infrastructure in Iran. I'll be at those were domestic facilities. So we have seen that that risk premium built in. Arguably there was some risk premium already supporting prices anyway as a lot of traders were saying that prices could have been lower than the roughly 60 65 range that we'd seen before this because of some of the tension here in the region. But at that kind of 75 dollar area where market is really not signaling that they're concerned about an interruption in supplies. So the market is hedging its bets for a little bit. But really we are in completely uncharted territories because we are in the first time where there's this massive state on state conflict between countries like Iran and Israel. You know just think about what Juman was speaking about before where we're kind of parsing social media posts from the president to try to figure out what U.S. policy is going to be. So so it's really a lot of a lot of guesswork here. The signals are of course if there's more U.S. military equipment coming to the region if Trump is speaking with the security team that signals there could be more escalation. But this goes completely against what some of Trump's base and some of his domestic supporters want. And I think in against his his intent in terms of avoiding war. So we really have to see whether he's going to take that step to make a major escalation. And from Iran's point of view they clearly want to avoid that that bringing to bear of more military force by the United States on them. So the question is would they lash out even if the U.S. is supporting Israel with with arms and with some support. Would they lash out against bases that would then bring the U.S. in. So we're really in uncharted territories and trying to figure out how this is going to happen. Will cooler heads as it were prevail in terms of keeping the conflict combined confined at least to those two states or will it spread out. And that's where the real risk comes in for the oil market. If that spreads if there's any interruption of supplies if it spreads to other producing countries in the region which those countries here are really at great pains to to avoid. So so that's that's really a lot of things that the market has to take in. But right now they're not signaling concern about supply.

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Kyiv

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Jerusalem

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