Oil Market Swings Wear Down Traders as Iran War Drags On

Almost a month into a deepening conflict in the Middle East, oil traders reeling from weeks of massive market swings are beginning to pull back, creating a drain on liquidity that threatens to exacerbate future moves.

Four of the six largest swings ever seen in international oil benchmark Brent futures have come since the war started at the end of February. Now, as traders struggle to adjust their exposure and protect their positions after weeks of extreme moves, more appear to be sitting on the sidelines.