| Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up here. The past two weeks of Middle East turmoil, culminating in President Donald Trump ordering airstrikes on Iran, can be hard to digest. One way to look at events is as an illustration of just how far oil’s role in global politics has been transformed. That the US president felt emboldened to attack the region’s third-biggest source of crude is testimony to America’s growing energy abundance. Thanks to a decade-long shale boom, the US has emerged as the world’s largest oil producer, diminishing its reliance on supplies from the Persian Gulf. The oil market’s reaction may only amplify Washington’s self-assurance.  A pumpjack near Crane, Texas. Photographer: Bloomberg Despite widespread predictions of a price spike, the fulfillment of a long-dreaded scenario — an attack on Iran’s nuclear program and retaliation by Tehran — elicited less of a bang than a whimper, and an initial rally in Brent crude swiftly dissipated. In fact, futures in London today are back to the levels seen just before Israel launched its offensive on June 13. Of course, the crisis could flare again and send the market surging. Trump acknowledged the risks by urging “everyone, keep oil prices down.” Even in a moment of presidential triumph, gasoline prices can still raise alarm in the White House. The president’s latest feint — suggesting that China should have a green light to buy Iranian oil despite US sanctions — reflects that desire to contain the economic fallout. Nonetheless, Tehran’s perceived leverage is bleeding away, and exporters that rely on the critical Strait of Hormuz corridor — like Saudi Arabia, the United Arab Emirates and Iraq — are breathing a sigh of relief as Iran again held back from closing it off. Riyadh in particular has navigated the situation smoothly, letting America target its old adversary without being drawn into the conflict, or shattering its tentative diplomatic détente with Iran. Their relief may be qualified. For oil producers in the Gulf and beyond, the crisis has also revealed an inconvenient truth: the days when geopolitical shocks unleashed a gusher of petrodollars may be over. — Grant Smith  WATCH: Stuart Livingstone-Wallace reports on Trump’s oil policies on Bloomberg TV. | 
