Red Sea Attacks Fail to Rattle Oil Market, Despite Demand Concerns and Record U.S. Production

Despite the recent increase in Houthi ballistic missile and drone attacks on commercial vessels in the Red Sea, the oil market has not experienced significant price swings as experts had anticipated. The attacks have primarily targeted Israeli-linked vessels, while Saudi, Iraqi, and Russian tankers have been spared. Factors such as the availability of alternative shipping routes, the rewiring of global energy flows, and the lack of disruption to oil production have contributed to the market's relative calm. Additionally, tensions between Iran and the US over the war in Gaza have not affected Iran's oil exports.