Oil Whiplashes 7% Upward As U.S./Iran Hostilities Pause Evaporatesby Ship & Bunker News TeamBut one analyst warns that physical market stress continues to be overlooked: File Image/PixabayU.S. president Donald Trump vowing powerful retaliation for a botched ‘surprise’ Iran attack against American forces in Jordan caused market players on Wednesday, who had been hoping for peace negotiations to take hold during a brief pause in hostilities between the two countries, to send oil prices spiralling upwards by nearly 7 percent. As of 1224 GMT, Brent rose $5.84, or 6.9 percent, at $89.93 per barrel; West Texas Intermediate climbed $5.34, or 6.7 percent, at $84.60 per barrel. CME Group calculated a 34 percent probability that the Fed will raise its main interest rate, the first increase in three years, which could slow the economy and affect demand. Oil's recent price swings and a near-obsessive hope among pundits that peace with Iran is feasible has come at the cost of overlooking warning signs in physical markets, as far as Oilprice.com energy analyst Irina Slav is concerned. Slav pointed out that record refining margins, tightening fuel supplies, and declining global inventories indicate growing stress in physical oil markets rather than futures.