War with Iran Stirs Uncertainty in Energy Markets

Oil prices jumped March 2 prompted by concerns that war with Iran could hamper global movement of crude, the Associated Press and other news organizations reported. Crude prices were reported to have jumped more than 6%.

“Ongoing U.S. military action involving Iran has introduced new uncertainties into global energy markets. Early market reaction pushed crude oil and refined product prices higher on Monday [March 2] amid heightened geopolitical risk,” NEFI President and CEO Jim Collura said in the industry group’s newsletter to members. Market conditions “remain volatile and subject to change,” Collura noted, adding, “Current weather forecasts point to a period of milder temperatures, which may help moderate near-term demand and ease immediate market pressures. However, the situation remains fluid, and energy markets may continue to respond as events unfold.”