Middle East Tensions Drive Brent Oil Prices Above $107

Brent oil is climbing on renewed tensions in the Middle East as US-Iran negotiations show little progress. Deutsche Bank's Early Morning Reid highlights the growing geopolitical risk, linking recent price movements to evolving headlines around technical talks between the two countries.

The Strait of Hormuz, a critical waterway for global oil supplies, remains at the center of tensions. Iran has reiterated its refusal to soften conditions for reopening the strait, including demands for sanctions relief and access to frozen assets.

Bond yields have also risen, with 10-year US yields up by 3.8 basis points and 2-year yields increasing by 4.6 basis points. Brent oil is trading above $107 this morning, up 2.58% from the previous week's close.