The price of oil and natural gas is known to be up and down, but it's also known as a good barometer of world political conditions, which is why it's worth watching the prices after the US bombing of Iran's nuclear facilities on Saturday.
As of 7 pm Sunday, the price of crude oil was up about 2%, with the world standard Brent measure approaching $80 a barrel, up from about $78 on Friday. The West Texas oil charts are up about 2.5%, nearing $77 a barrel, up from about $75.
The increase in price is pricing in some concerns about the future risk of geopolitical upheaval in the Middle East and elsewhere over the coming days and weeks. These prices are before Iran has taken any countermeasures against western nations following US attacks on Iran's three biggest nuclear facilities on Saturday, which Israeli Prime Minister Benjamin Netanyahu has said set back the Iranian nuclear program by a decade.
Depending on their severity, the price of oil and natural gas expected to increase over the next few days, in response to retaliatory attacks on the US or its interests by Iran and its proxies.
The increase in oil prices so far appears to have a minimal effect on gasoline pump prices, which have been going up a little anyway because the summer driving season is underway.
The biggest worry to many oil analysts is whether Iran will close the Strait of Hormuz, the important worldwide shipping lane that skirts Iran's border. If Iran were to shut it down it could cause the price of oil to surge to more than $100 a barrel and the price of gasoline to go to $4 a gallon -- and much more per gallon on the east and west coasts of the US.
For some analysts, the question is this: Iran would be shooting itself in the foot by closing the Strait of Hormuz since most of its money comes from oil that would stop if it closes, but if all Iran wants right now is revenge against the United States for attacking Iranian nuclear sites, then the Islamic nation might be willing to weather some bad times if it inflicts a lot of economic damage on the US and the Western world -- and the closing of the Strait might do just that.
Of course, if China or Russia attempt to come to Iran's aid either militarily or economically, then all bets (and all presumptions) are off.