What futures and options say about the cost of war
Spot prices reveal major disruption, futures indicate this will pass, options imply ongoing instability
The US-Israeli war against Iran has abruptly repriced global energy risk.
Brent Crude oil traded at 70 dollars per barrel on February 27. At the time of writing, it is trading above $105. The jump in spot prices reveals the scale of immediate disruption caused by the war in the Gulf. But it says little about the persistence of disruption, or the likelihood of extreme scenarios.
To address those
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