Middle East turbulence has spared oil fundamentals, but escalation a different ball game

A 3D-printed oil pump jack is seen in front of a displayed stock graph in this illustration picture. — Reuters

OIL has witnessed some volatile sessions amid worries about supply disruptions since the Israel-Hamas conflict started, but the way the market has behaved for most of the period shows that any impact on fundamentals would largely be limited, unless the situation escalates.

What would be of bigger relevance for the oil market is what action the US will take in relation to Iranian oil exports, any potential retaliation by anti-Western militias or attacks on Middle Eastern oil infrastructure.