Oil futures were higher early Thursday.

For now, oil’s price actions suggest that markets are assuming that there won’t be an escalation in the Middle East situation, ING commodities strategists said.

However, as a growing number of ships avoid the Red Sea, this is clearly disruptive for trade flows, the strategists added.

“A full breakout of the war against Israel from other Middle Eastern nations would disrupt the supply chain and send oil prices skyrocketing, ” said Peter Cardillo, chief market economist at Spartan Capital.

Pakistan carried out airstrikes early Thursday inside Iranian territory, Pakistan’s foreign ministry said, killing Pakistani militants there.