Prices were indeed reaching extremes. Yesterday’s surge to $62 was met with a sharp, one-way correction back to the low $59s, with the commodity actually finishing the session lower by 1%.
The premium was built on the perception that a US intervention in Iran was imminent.
The movement of US Army assets from nearby bases, including Al-Udeid in Qatar, was seen as a concrete sign of incoming action, as these foreign bases could be targets for shorter-range Iranian missiles.
However, recent reports suggest that Gulf leaders—including those from Qatar, Saudi Arabia, and Oman—persuaded the US President to walk back his threats.
The compromise stems from US reluctance to get bogged down in a prolonged war if limited intervention fails to trigger regime change—a risk heavily emphasized by US strategic counselors.
Still, the revolts show no signs of easing. The pain for Iranian civilians is real, as they face the weakest Rial in history amidst extreme inflation, power and water outages, and record air pollution.
Looking at betting markets, this dynamic is far from over. Odds for an attack before the end of the month still hover around 30%.