Iran-Israel Conflict Moderately Affects Global Oil Prices, US Gas Impact Limited

Following recent military actions involving the U.S., Israel, and Iran, oil markets have shown notable stability despite initial price surges, with Brent crude prices rising only modestly before returning to normal levels. Analysts predict only slight increases in U.S. gasoline prices, estimating a rise of just a few cents per gallon in the near term, as the market quickly adjusted after an initial crude oil price spike. Experts highlight that the global oil supply remains well-supported with no significant disruptions to Middle Eastern oil flow, contributing to the limited impact on fuel prices. The reduced reliance on Middle Eastern oil due to increased production from countries like the U.S. and Canada, along with strategic alternatives such as new export routes and storage capacities, has lessened the geopolitical influence on oil prices. The recent ceasefire news between Israel and Iran further eased market tensions, leading to declines in crude prices and a shift in focus back to supply and demand fundamentals. Overall, while the conflict has caused some price volatility, its effect on U.S. consumers and global oil markets is expected to be moderate and short-lived.