The Globe and Mail reports in its Tuesday edition that the U.S. attack on Iran over the weekend ratcheted up the conflict in the Middle East, but the falling price of crude oil suggests that investors are taking a surprisingly upbeat view of what happens next. Some observers doubt whether this view will last. The Globe's David Berman writes that on Monday, the price of West Texas Intermediate fell 7.2 per cent to $68.51 (U.S.) a barrel, after a brief rally earlier in the day faded. The S&P/TSX Energy Index fell 3.5 per cent. Oil is now up less than 1 per cent since Israel attacked Iran on June 13, despite U.S. involvement and Iranian retaliation. One reason for the muted response from oil: Some observers expect that Iran has limited ability to respond meaningfully to attacks that have pummelled its air defences and nuclear ambitions. Nonetheless, many observers remain uneasy about the conflict and the lingering threat to markets. RBC commodities strategist Helima Croft noted that Iranian jamming of transponders near the Strait of Hormuz has prompted warnings about using the waters. Ms. Croft said in a note, "Above all, we would caution against the kneejerk 'the worst is behind us' hot take at this stage."