Crude oil price, why do rumors of wars change it dramatically?

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!

4 Responses to “Crude oil price, why do rumors of wars change it dramatically?”

  1. Andrew F Says:

    one reason is that it takes so much more oil to run a military – aircraft – armour – troop transports – naval vessels. So if there is the possibility of war then the demand will go up from the warring states and those that support them. That effects the price on the market,

    another is that if the war is going to be in a country with oil refinerys and oil wells then the supply lines of oil themselves may get hit or be targets. This increases the risk of loss and the price goes up.

  2. pa_mat2003 Says:

    Imagine a clock. Everything that is part of it, is performing a specific function. And cannot do anything else, as long as it is preserved as a part of this structure. In other words it is SET this way, because someone (as if it were) has decided so. It is likewise with the wars and the rumours of wars.

  3. fgrifea Says:

    Seems to me the bottom feeders and blood suckers willuse any excuse to sqeeze you.

    Sounds like a dag gone mafia to me.

  4. abenezerscroogex Says:

    speculation, buy on the rumor sell on the news.