On Monday, the rise in crude oil prices to $100 per barrel temporarily stopped, but it is unclear whether the price of crude oil is temporarily resting or experiencing long-term resistance.

Traders note that even though the risk of a larger war in the Middle East is still high, oil prices were unsupported after Iran attacked Israel over the weekend.

Regina Mayor, head of KMPG's global customer and markets business, said in an interview: “The oil market has become accustomed to volatility, and they can withstand a lot of risk.”

Darwei Kung, head of commodities and portfolio manager at DWS Group, said that since Israel attacked Iran's consulate in Syria at the beginning of this month, the market has included a “risk premium” in oil prices. As of this month, the prices of WTI crude oil and Brent crude oil have risen by about 3%, respectively, according to Dow Jones market data.

“Given the attitude of the US and its allies, and the Israeli government's delay in taking action, we think the market absorbed some of the potential increase in oil prices on Monday ahead of schedule,” Kung said.

However, Kung pointed out that “conflicts between countries are always difficult to predict,” and if Israel launches a retaliatory strike, it may cause unexpected damage to Iran and its proxy forces.

He mentioned that the moderate correction in oil prices “shows that the market is taking a wait-and-see attitude towards the conflict between Iraq and Israel.”

He added: “Major disruptions to oil supply in the short term are less likely if the conflict is brought under control, and current prices reflect this view.”

SEER's Lynch said the market believes Iran's “failed” attack on Israel means “the situation may calm down, as the Biden administration hopes.”

He said, “If Israel persists in retaliation, and the retaliation is serious, such as causing damage or loss of life, then the market will worry that the situation will escalate. Under such circumstances, the price of oil may rise to $100 per barrel, especially if some oil facilities are damaged.”

At the same time, DWS Group's Kung expressed more strongly about the oil price outlook. “If the conflict intensifies, the difficulty of predicting oil prices will skyrocket,” he said.

Under these circumstances, “we expect market participants to make a downward assessment of global economic growth expectations,” Kung said. The escalation of tension may cause oil prices to rise to $100 per barrel or more, depending on the severity of the escalation of the conflict and the extent to which oil supply to the Middle East is interrupted.

However, KPMG's Regina Mayor believes that it may be far-fetched to see oil prices rise to three digits at present.

She said she is bearish on oil prices and is not ready to forecast three-digit oil prices, adding that the oil supply and demand situation is “healthy.”

Mayor doesn't expect oil prices to reach three digits, and says he is more “concerned about overall market fundamentals than the daily geopolitical situation.”