Momentary price spikes aside, the recent conflict and now uneasy ceasefire between Israel and Iran has done little to alter the trajectory of global oil markets, according to a new analysis by S&P Global Commodity Insights.
F. Gregory Gause, professor emeritus of international affairs at Texas A&M University’s Bush School of Government and Public Service, doesn’t believe Iran has the naval capability to close the Strait of Hormuz. If oil tankers begin avoiding the Strait, which 20% of the world’s oil and natural gas travels through, prices could rise, benefiting Texas producers.