In light of escalating tensions in Iran, markets have reacted notably with oil prices showing volatility. According to Vytenis Šimkus, an investment strategist at Swedbank, the oil market has already experienced an uptrend for several weeks, with Brent crude reaching as high as 82 dollars per barrel before settling around 78 dollars.

The initial surge in oil prices on Monday morning reflected market fears, but these fears have since subsided, leading to a 7.5% increase from the previous Friday's price. Šimkus noted that since the beginning of the year, oil prices have risen by approximately 30%, underscoring the market's sensitivity to geopolitical events. He highlighted that the duration of military actions will be critical, predicting broader implications if conflicts persist for weeks or months.

However, while disruptions to oil supply through the Strait of Hormuz could impact market equilibrium, Šimkus does not anticipate a dramatic energy crisis at this moment. Instead, he implies that the current market fluctuations reflect a cautious response rather than immediate panic, suggesting that while prices might rise, the situation remains manageable in the short term.