Oil Prices Surge Amid US-Iran Tensions
Crude oil prices have surged in recent weeks, driven by renewed tensions between the US and Iran. The Brent crude price has reached around $96-$99 per barrel, its highest level in nearly one and a half months, while US WTI crude has moved above $90 per barrel.
The strength of the rally can be attributed to the geopolitical risks premium built into prices by traders. Although actual supply losses remain limited, fears of disruptions have led investors to worry about the impact on global oil supplies and tanker movements through the Strait of Hormuz.
Resilient demand from major economies, including the US, India, and Southeast Asian nations, has also supported the market. However, rising oil prices pose inflation risks and could influence future Federal Reserve decisions.