Daily Caller Story: The Vanishing Oil Price Fear Factor

The international Brent crude benchmark prices dropped as low as $82/barrel on Nov. 7, well below the Oct. 6 closing price of $84.58, as fighting has remained centered in Israel and Gaza despite weeks of saber rattling by Iran’s Islamic rulers and sporadic firing of missiles into Israel by Hezbollah terrorists, who, like Hamas, are supported by Iran and other terror-supporting nations.

Initial concerns were driven mainly by concerns the conflict could widen across the Middle East and eventually threaten the free flow of oil out of the Persian Gulf through the Strait of Hormuz. Such fears are valid given that about 20%-25% of global oil production must traverse through this critical gateway each day to make its way to importing markets around the world.

Indeed, protecting this flow of oil has been a major objective of U.S. foreign policy and military operations in the region since shortly after the end of the second World War.