Group 1 - The latest Middle East conflict is perceived by traders as likely to be short-lived, as evidenced by their strategies in oil options and futures markets [1] - The Israel-U.S. attack on Iran has caused significant disruptions in energy markets, leading to increased war-risk insurance costs and record freight rates, with oil prices reaching multi-year highs [2] - Traders are indicating that the price shock is temporary, as shown by the significant increase in 30-day Brent implied volatility, while longer tenors saw only modest increases [3] Group 2 - The Brent futures curve reflects tight near-term supply, with a notable backwardation indicating short-term disruption, as the spread between the front-month and six-month contracts widened to about $10 [4] - The put-to-call ratio for West Texas Intermediate options dropped significantly, indicating heavy bullish call buying, before rebounding as demand for downside protection returned [5] - Market sentiment is gauged through the put-to-call ratio, which compares bearish put options with bullish call options, revealing a more negative gamma profile in crude due to dealers being short on deep out-of-the-money calls [6][7]