Oil Prices Hold Steady Amid Iran Conflict

When Iran shut down the Strait of Hormuz at the start of the war, oil prices were expected to skyrocket. However, nearly seven months later, oil is expensive but not exorbitant, and analysts say there is enough oil available to meet current global needs.

Saudi Arabia and other Gulf producers quickly found alternative routes and reached for unused pipeline capacity when Iran targeted their sea passage. When the oil exporters and the US military found new ways around these blockages, Iran's leverage was diminished, even as a US naval blockade and tightened sanctions smothered its own economy.

The higher prices are causing political problems for US President Donald Trump and others, but oil is currently trading at around $100 a barrel, higher than before the war but not as bad as feared.