Oil Price Update: A Muted Response So Far ***UPDATED***

Oil prices jumped as I had projected at the opening of trading on Asian markets Sunday evening. But the boost was not nearly what many, like JP Morgan, were anticipating, and the rally quickly faded back to Friday’s status quo as traders watched to see how Iran would respond to Saturday’s U.S. bombing of its nuclear enrichment facilities.

The Brent price initially spiked by about 5.7% to above $80 per barrel when trading opened, with the U.S. WTI index rising above $78 for the first time in months. But that slight rally quickly faded as Iran did some tepid saber rattling about shutting down the Strait of Hormuz without taking any concrete action.