Oil prices surge as analysts say Iran conflict 'may be different' from previous flare-ups

Key Highlights

• Futures tied to Brent crude (BZ=F) and West Texas Intermediate crude (CL=F) jumped more than 9% Tuesday morning before paring gains.
• It's unclear whether oil futures will continue to rise.
• In past conflicts, such as the 12-day war last year between Israel and Iran, prices jumped but fell back down to their previous levels within days.
• But unlike past flare-ups, the current escalation has already triggered concrete disruptions in shipping and insurance markets, tightening flows even before any confirmed physical damage to major oil infrastructure.
• "Recent conflicts have generated a more muted response in oil prices, refining margins, and energy equities," Mizuho equity analyst Nitin Kumar said in a client note published on Monday.