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well not the sustained rise no, but the markets are fickle, that in a single day prices will jump and then when it's resolved it stablizes, all in one day
the straight of hormuz is a constant concern cause it's the only places ships can enter the persian gulf, and it comes extremely close to the iranian border, when ever there is a rumor or scare that they would force a blockade barrels tend to jump a couple of dollars
but it seems to be easing a bit at the moment, but all it takes is some stuble in the dipolmacy process for prices to jump again
(VIENNA, Austria AP) -- Benchmark crude prices dipped below $65 Tuesday as tensions in the Britain-Iran standoff eased.
Prices had risen steadily since 15 British sailors and marines were detained March 23 by Iran for allegedly entering Iranian waters. On Monday, crude fell below $66 a barrel after Iran's chief international negotiator called for an end to "the language of force" in the dispute.
Light, sweet crude for May delivery fell 97 cents to $64.97 a barrel in electronic trading on the New York Mercantile Exchange by afternoon in Europe. Two weeks ago, the contract was trading under $60 a barrel.
On London's ICE Futures exchange, Brent crude for May sank 87 cents to $67.91 a barrel.
"The market seemed to believe statements by Iran's secretary of the Supreme National Security Council, Ali Larijani, could ease tensions between the Islamic Republic and the U.K.," said Vienna's PVM oil Associates.
Still, Victor Shum, of Purvin & Gerz in Singapore warned of potential market volatility.
"There's no clear indication one way or the other how it's going to be resolved," Shum said. "There could be price swings in either direction depending on how this situation develops."
The fear that Iran could disrupt the oil trade is causing traders to add a risk premium, especially as they see less of a cushion after the Organization of Petroleum Exporting Countries' production cuts
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