While global energy markets are not yet pricing in worst-case scenarios for the Israel-Iran war, oil tanker rates are providing a good real-time gauge of the escalating risks.

MILITARY conflict between Israel and Iran escalated over the weekend, and markets are bracing for further signals from the Middle East and Washington that will shape the market outlook in the week ahead.

Despite heightened tensions between Israel and Iran and resulting market speculation, oil supply from the Middle East remains largely unaffected, with the critical Strait of Hormuz staying open for navigation.