Oil prices rose after the U.S. launched military strikes against Iran, raising concerns that renewed clashes may threaten shipping through the Strait of Hormuz.

Oil analysts are scratching their heads over why prices haven’t gone up more because of the Iran war.

One of the biggest mysteries of the global economy is why the oil market has remained so calm during one of the greatest supply shocks in history.

Oil prices surged after Israel and Iran exchanged fire, threatening an already fragile ceasefire in the Middle East and dimming hopes for an agreement to reopen the Strait of Hormuz.

Oil prices rose following the latest threats to the U.S.-Iran ceasefire, and U.S. stocks retreated from their records

The Trump administration is even considering making California home to a giant cache of oil which the federal government could deploy in case of emergency, an effort tied to its concerns that the state’s military facilities are overly reliant on oil imported from abroad.

As the war in Iran has stymied traffic through the Strait of Hormuz, demand for oil has fallen, and industry watchers and oil executives have started to fret about “demand destruction.” The decades-old term refers to the sustained loss of demand for a commodity caused by high prices.

Around 20 million barrels of oil per day (BPD) traversed the Strait of Hormuz before the war with Iran. That accounted for about 25% of the global seaborne oil trade and around 20

The price of oil rose sharply after Iran reportedly cut off talks with the United States to the war. Crude oil jumped to levels not seen since mid-May.

The cartel’s move to increase output by 188,000 barrels per day is largely symbolic, with vast amounts of the world’s oil stranded by the effective shutdown of the Strait of Hormuz.

Oil prices inched up on Tuesday after Iran and Israel left the door open to a possible resumption of attacks, despite calling a halt to hostilitie.