Mačiulis: Why Aren't Oil Prices Rising?

Despite over 100 days of conflict and fragile ceasefires in Iran, coupled with significantly restricted ship traffic through the Strait of Hormuz, oil prices have not surged. In fact, they remain lower than they were in March, a situation that Swedbank Chief Economist Dr. Nerijus Mačiulis explores in his commentary.

Mačiulis delves into the underlying reasons for this unexpected market calm. The ongoing conflict and its impact on global energy markets have created a tense environment, yet the anticipated price hikes have not materialized. This suggests a complex interplay of factors influencing supply and demand dynamics.

The commentary aims to shed light on whether the most critical phase of the oil market's reaction to the conflict is now in the past. By examining the current state of affairs, Mačiulis provides an analysis of the geopolitical landscape and its effect on oil prices, offering insights into the potential future trajectory of the market.