Crude oil prices are rising as renewed tensions between the United States and Iran inject fresh uncertainty into global energy markets.
The geopolitical friction has triggered immediate repricing in energy assets, with traders assessing the potential for supply disruptions in the region.
Folker Hellmeyer, chief economist at Netfonds, noted that markets are handling these crises relatively well.
Despite the spike in oil, equity markets have shown remarkable resilience.
US stock markets staged a mid-session reversal earlier in the week, wiping out early losses to finish in positive territory, with the Dow Jones Industrial Average trading near record highs.
This divergence suggests that investors are currently compartmentalizing geopolitical risks, viewing them as manageable rather than systemic threats to growth.
Folker Hellmeyer, chief economist at Netfonds, noted that markets are handling these crises relatively well.