The Wings of Fire fandom is wrong in general about Clay being 'oblivious' towards Peril's feelings, because he's really not that oblivious. People like to portray him like Phineas Flynn--like he wouldn't know if somebody liked him if they said it to his face, but that's really not Clay.
I think there are two major reasons that this interpretation arises--aside from the fact fandoms love to flanderize 'oblivious' characters--and those are 1) Clay being confused when Tsunami jokingly describes Peril as his 'girlfriend' in TDP, and 2) by the time EP rolls around, Peril's feelings for Clay have gone unacknowledged by Clay. However, I don't necessarily think either of these factors point towards the complete romantic oblivion that most people like to portray him with, and I'll break it down.
1: Clay being confused when Tsunami jokingly describes Peril as his girlfriend
The DoD are, for the most part, very much written like teenagers, and I think that's pretty clear in TDP, where Clay is somewhat consistently portrayed as finding the whole 'relating to girls' thing quite confusing. When Glory and Tsunami are frustrated with him over stating that Peril could be their 'wings of sky', his response is to ask if it's a 'girl thing he doesn't understand'. He's genuinely surprised whenever any dragon expresses that he's attractive. He is the only one of the Dragonets Of Destiny--Sunny aside--to not even slightly pick up on Starflight's feelings for Sunny (interestingly, I never see anybody integrating 'utter obliviousness' into Sunny's fan perception despite how blindsided she was by Starflight expressing his feelings). I think at this point it's pretty safe to say that Clay isn't so much oblivious as he is just new to the concept entirely and that relating to the opposite gender within the framework of potential romance rather than just 'his sisters and Kestrel' is pretty new ground. Also, when Tsunami makes the 'evil girlfriend' quip, Clay has only known Peril for a few days, and he hasn't necessarily considered her in that light, so he's a bit confused when Tsunami goes there.
Next, and more pertinently:
2: Clay has not acknowledged Peril's feelings, at least to her by the time Escaping Peril happens
By the time Escaping Peril rolls around, it seems like everyone but Clay can tell that Peril likes him, but Clay apparently hasn't made any moves one way or the other towards her, making them the only Arc One implied couple to not have had some form of resolution by this point in Arc Two (Fatespeaker and Starflight are nigh-inseparable throughout A2, we've seen Glory and Deathbringer interact in Winter Turning and being quite affectionate towards one another; and Riptide and Tsunami are not together because neither can get the guts up to actually reach out first, but they both think about each other a lot), which leads a lot of people to assume that Clay is simply unaware of Peril's feelings. However, that's not reflected in the text. Clay is explicitly confronted about Peril's feelings towards him in chapter four, and his response isn't to be 'who? me? no she doesn't!'
That's not the response of someone who is being confronted with the Entirely New Concept of someone liking them. This reads more like Clay is aware of Peril's feelings and is concerned that Ruby will assume that the reason he's willing to pardon Peril is either a) because they're dating and he's willing to look more kindly on her or b) he's flattered by the attention. He also seems to want to shut down Starflight's implication that Peril's redemptive feature is her loving him. Additionally the epilogue of Darkness of Dragons features Clay asking Peril to fly with him in what is generally implied to be a romantic gesture, but only after we see that she has integrated into the school--she has friends, she has interests, she's shown a degree of moral development.
This all reads to me like Clay is aware that Peril is interested in him--and perhaps he's interested in her too--but he also knows that in her emotionally disastrous current state, where she is using him as a template for her sense of morality and has invested her entire sense of stability and self-worth in his affection for her, it would be a terrible idea for him to act on those feelings. Clay steadfastly believes that Peril can be a better dragon and he doesn't want that linked simply to himself. This is reflected in the beginning of Escaping Peril when Peril asks 'what do you want me to do?' and his response is that he's not going to become a new Scarlet for her--Clay's not going to engage with her beyond his usual brand of friendly affection until he's sure he's not the centre of her whole world, and that she's able to find a sense of self-worth outside of him. Which is the smart and healthy thing to do--if he did decide to act on her feelings, the obsession would likely become worse and if the relationship ended poorly, she'd only become more volatile, distrustful and murderous. Shout-out to Clay for handling the Peril situation really well, actually.
TL;DR: Clay's actually cleverer than we give him credit for, especially in matters of emotions, even if it took him a while to get there.













