Oil 'Risk' Remains High As Deep Uncertainty Still Surrounds Iran War

Authored by Michael Ball, Bloomberg macro strategist,

Even after the sharp pullback from Monday’s highs in Asia trading, oil options are still pricing in large daily moves and call skew is highly elevated in both Brent and WTI. 

The Iran conflict has created a one-headline-away market where pullbacks do little to erase supply-shock tail risk.