Oil Surges to Three-Month High Amid Escalating Tensions with Iran

Oil prices have surged to a three-month high as hostilities between the US and Iran escalate, raising concerns over further disruptions to global oil supplies.

The price of Brent has reached $100 per barrel, while WTI is approaching $95. The recent developments in the region have increased worries about supply disruptions, leading to an elevated risk premium on oil.

Disruptions across the Strait of Hormuz remain acute, with only six commodity vessels crossing the strait on Tuesday, down from nine the day before and half the recent average over the last 10 days.

The broader physical market is currently tighter, with shipments of Middle Eastern crude dropping to around 11 million barrels per day, down from about 18 million barrels per day before the conflict.

In related news, the GBP/USD pair has struggled to push above 1.3500 after Bank of England Governor Andrew Bailey expressed skepticism over rate hike expectations, citing ongoing economic and geopolitical uncertainties.