The oil market is in a bit of a panic today.

The main catalyst is a Politico report saying:

White House officials huddled with oil industry executives Tuesday to discuss steps to tamp down the surge in energy prices in the event the U.S. keeps its blockade of Iranian ships in place for months.

There are also increasing reports about US military activity in the region and a report saying the US had planed for a short wave of strikes. Weighing against that is a report that a US aircraft carrier has left the region.

The market appears to be concluding that the Iran war isn’t on the verge of ending, as it seemed at several occasions in the past two weeks, particularly when Iran briefly announced that Hormuz was open.

It’s incredible that stock markets are taking this in stride.