HEAD OF RESEARCH REVIEW
The elephant in the room for oil markets in June was the 12-day war between Iran and Israel, which ended swiftly after the US bombing of Iranian nuclear facilities at Fordo, Natanz and Isfahan on 22 June conducted under the mission name ‘Operation Midnight Hammer’. Iran retaliated on Monday, 23 June, in a well-choreographed manner, with a limited salvo of missiles aimed at the pre-emptively deserted Al Udeid Air Base in Qatar. No US assets or personnel were hit, and Qatari defence systems intercepted the Iranian missiles. Thereafter, colourful vernacular from President Trump ultimately sealed a ceasefire between the warring parties. The geopolitical whirlwind that swept through oil markets came and went. While one cannot exclude more flare-ups, the cease-fire is holding up for now, and the market can revert its focus on its supply/demand fundamentals.
