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The tensions in the Middle East have not disrupted the flow of oil, and crude oil prices have declined.
On June 16, Jin10 reported that crude oil futures fell on Monday, pulling back from earlier gains as traders assessed the limited impact of a new round of hostilities between Israel and Iran on oil production and exports. The crude oil market remained stable due to uninterrupted oil transportation. However, traders are still closely following the Strait of Hormuz. If Iran’s exports are hindered, major buyers of Iranian crude may turn to other Middle Eastern or Russian grades of crude, potentially narrowing the Brent-Dubai spread and putting pressure on the profit margins of Asian refineries.