US-Iran Conflict Stabilizes Oil Prices Despite Initial Chaos

The five-month-long conflict between the US and Iran has had an unexpected effect on oil markets. Despite initial chaos, oil prices have stabilized to a range of $75-$83 per barrel for Brent crude. This is remarkable considering that the Strait of Hormuz, which accounts for about 20% of the world's oil supply or 20 million barrels per day, was closed by Iran in early March.

Oil markets reacted violently to the initial shocks, with prices surging past $100 per barrel and even reaching as high as $120. However, when hostilities resumed in early July, prices only briefly spiked above $75, indicating a reduced market reaction.

The conflict has also had little impact on crypto markets. Unlike previous geopolitical crises, where Bitcoin was touted as a safe-haven asset, the current situation has seen no significant surge in cryptocurrency prices or mentions in major news coverage.