A further escalation in Iranian-Israeli tensions could take oil prices above $80 and would mean more upside for the dollar.

Iran has generally been very wary about taking steps that could draw the US into a direct conflict, preferring to act through proxies. This would suggest a direct strike on US facilities or a drastic move likely blocking the flow of oil through the Strait of Hormuz, which could cause a spike in global energy prices, is unlikely.

Britain ‘not at war’ despite sending more RAF jets to the Middle East, Reeves says - Rachel Reeves said Britain may play a military role in helping Israel as the conflict intensifies

The past two years of escalating tensions in the Middle East have taught oil traders to be sanguine about the risk of disruption to oil supplies. Read more at The Business Times.