Geopolitical Tensions Fail to Spark Oil Price Surge

The tensions in the Middle East have highlighted the ebb and flow of the geopolitical risk premium in oil prices so far this month. Analysts believe that oil currently includes between $5 and $10 per barrel in premium to reflect a risk of escalation in the Israel-Iran conflict. The past week has illustrated how traders perceive geopolitical risk. Just as Brent Crude prices had eased to the upper $80s after the Iranian drone attack against Israel in the April 13-14 weekend, oil spiked by 3% early on April 19 amid reports of an Israeli…