In the Middle East, why is it that when there is a rumor (not an actual) of war, as in the tension between the Brits and Iran today over the 15 captured marines and soldiers, oil prices spike even if there is no real war and no actual disruption to production or delivery? Supply remains the same: demand remains steady, and yet prices skyrocket! Finally, once an issue is resolved, the prices remain high for an extended period, while the first hint of a war or tension, prices jump quickly- why is this?
Serious answers and conspiracy theories welcome! Thanks a million!
