Commodities
Middle East Tensions Drive Brent Crude Prices Higher
The price of Brent crude oil has risen by 4.99% to settle at $87.72 per barrel due to geopolitical instability in the Middle East.
The surge comes amid heightened uncertainty across the region, with diplomatic efforts between the US and Iran ongoing but stalled. Iranian officials have denied progress on a potential agreement, instead focusing on securing control over the Strait of Hormuz and pursuing separate talks with Oman.
The risk of global oil supply chain disruption remains high due to the prolonged closure of the Hormuz and Bab-el-Mandeb straits, which could severely impact economies in the US and Iran. Market participants are closely watching the duration of the conflict.