US-Iran Conflict Fails to Send Oil Prices Soaring
When the US and Israel went to war with Iran in February, oil market analysts predicted prices could hit $150 per barrel. But despite concerns over supply disruptions due to the conflict's impact on the Strait of Hormuz, Brent crude futures peaked at just $126 and averaged around $101 a barrel between late February and mid-June.
One reason for the relatively stable price was China, the world's largest oil importer, which reduced its crude imports to nearly decade-low levels by June. This helped mitigate pressure on global oil markets.
The US, the world's largest oil producer, also played a role in stabilizing prices. Production reached a record 13.93 million barrels per day by April, and the country released crude from its Strategic Petroleum Reserve as part of a coordinated release with other countries.
US President Donald Trump's statements about peace agreements and resumed flows through the Strait of Hormuz also helped calm market fears.