Petroleum prices have fallen following Iran’s missile and drone assault on Israel, confounding expectations that the escalation of the shadow war would cause them to rise. Like major industrial accidents, extreme moves in oil prices, spikes or slumps, are always the product of multiple factors rather than a single cause. Spikes usually occur when the business cycle is mature; inventories are well below normal; spare production capacity is low; and there is an actual or threatened disruption to production. In this instance, however, the escalation is occurring in a market that is otherwise comfortably supplied, with ... (full story)