Market Reaction to Iran's Attacks - Initial price surge in WTI crude to $7762 was largely due to short covering, as money managers held significant short positions [1][2][5] - If retaliation freezes without infrastructure damage or Strait of Hormuz closure, prices may cool off due to no supply impact and continued OPEC production [3][4][5] - Closure of the Strait of Hormuz would significantly impact prices, increasing shipping costs and transit times, though alternatives like the Suez Canal exist [11][12] US Oil Production and Supply - US shale production may have peaked, with declining rig counts potentially putting downward pressure on oil production [6][8] - Despite potential production pullback, the United States remains one of the largest oil producers globally, maintaining production above 13 million barrels per day [4][8] Economic Factors and Future Outlook - Economic growth, US-China negotiations, and inflation trends influence oil prices [9] - Positive GDP outlook in the second quarter and boosted global GDP forecasts may support oil prices [10] - If the situation stabilizes, the high of $7762 for WTI and $7850 for Brent may be the peak for the remainder of 2025 [10]