The extreme volatility of global oil prices has drained liquidity from the market this year at the fastest pace on record, as investors have become increasingly wary of committing cash to an asset that has become hostage to US President Donald Trump’s daily social media posts on the Iran war.

By Myra P. Saefong and Victor Reklaitis

Financial markets are increasingly pricing in a favorable strategic outcome for Israel despite growing economic strains from prolonged regional conflict, rising militarization,…