Why the Middle East war still convulses the oil market

After more than five months of conflict, oil markets continue to surge and tumble over the latest developments in the US-Iran clash, including United States President Donald Trump’s shifting pronouncements. What is behind the market’s volatility? The ‘shock’ of Hormuz While the potential vulnerability of the Strait of Hormuz has long been viewed as a risk, oil markets have still been caught off guard by Iran’s ability to largely close the crucial waterway. “What really shakes the market are surprises… and the Hormuz closure was a shock,” said Jim Burkhard, head of global energy crude oil research at S&P Global. Brent oil prices surged more than 13 per cent in the immediate aftermath of the…