Oil markets on edge

Is the Middle East war theatre expanding? Already, the region, crucial to the stability of the global energy supply-demand dynamics, was coping with the ongoing Hamas–Israel conflict. Now it seems several other players are getting sucked into the war. Oil markets have largely been calm to the war. But that calm is now under strain. And if this happens, it will seriously impact the oil markets. March West Texas Intermediate (WTI) crude oil futures have been oscillating within a narrow $8.00 range, displaying resilience in the face of the growing pressure. But despite this confinement, the market has managed to register a small gain last week. In the short term, traders are keeping a close watch on the array of elements shaping the oil market, the evolving tensions in the Middle East, fluctuations in US production, and shifts in global demand, Oilprice.com noted. Since November, the Yemen-based Houthis began attacking merchant vessels passing through the Red Sea. This resulted in a military response from the US and a coalition of forces. Meanwhile, Iran also jumped into the fray, initially striking Iraq and Syria with missiles. But that was not the end of the story.