Not a whole lot Iran can do to respond to Israel, says Again Capital's John Kilduff

Market Impact of Geopolitical Events - Initial market reaction to Israel's military strikes against Iran was muted, suggesting a degree of resilience or disbelief in significant escalation [1][2] - The market's calm response is attributed to the perception that Iran's military capabilities have been degraded, limiting its ability to retaliate effectively [2] - However, the potential for asymmetric responses from Iran, such as attacks on oil infrastructure or through proxies like the Houthis, remains a concern [3][4] Geopolitical Considerations - Saudi Arabia is wary of a regional conflagration and had previously discouraged attacks, indicating a desire for regional stability [4] - China and Russia, as significant buyers of Iranian oil, have a vested interest in preventing disruptions to oil shipments, particularly through the Strait of Hormuz [5][6] - China's economy, being heavily industrial, is particularly vulnerable to disruptions in oil supplies and higher prices [6] Oil Price Outlook - The worst of the price surge is likely over for now, with expectations of a return to a price range around $60 per barrel for WTI, fluctuating $5 above or below [8] - Downward pressure on oil prices is expected to resume, contingent on factors like summer driving demand in the United States, which is currently looking soft [8]