Following a brief spike in oil prices driven by geopolitical tensions in the Middle East, Brent crude has now returned to levels near $67 per barrel (August contract as of Friday close is ~67.31) –close to where it traded before the recent escalation. This rapid normalization reflects how quickly markets discounted the risk of a broader supply disruption, despite the initial shock caused by U.S. and Iranian military exchanges. We offer a derivatives structure that best suits possible oil outcomes.
