Ahead of Wednesday’s market open, energy stocks experienced a decline. Commerzbank attributed this trend to the ongoing influence of geopolitical developments on risk premiums. Additionally, the muted market reaction to Iran’s attack on Israel in the oil market was also highlighted as a contributing factor. Commerzbank noted that the geopolitical landscape remains highly volatile, with the Russia-Ukraine conflict and tensions between Iran and Israel continuing to weigh on market sentiment. The bank suggested that while the oil market has shown resilience in the face of these uncertainties, the potential for further escalation remains a concern for investors. The subdued response to the Iranian attack was attributed to the perception that it was not an immediate threat to major oil installations or shipping lanes.
Energy Stocks Slide Ahead of Wednesday’s Bell
