US Aircraft Carrier Deployment Sends Oil Prices Higher

Oil prices held steady after a two-day gain as the US sent an additional aircraft carrier to the Middle East, potentially escalating tensions and threatening energy flows. The move comes just as concerns over Middle East supply had begun to ease.

The Pentagon is deploying an additional aircraft carrier and 10,000 sailors and Marines to the region, giving more options for President Donald Trump if he chooses to increase attacks on Iran.

Oil futures have swung this week as traders weighed improving Middle East flows against the risk of escalation. Brent remains almost 70% higher this year as the US-Iran war stretches into an eighth month with little progress toward a diplomatic resolution.

‘The oil market is highly susceptible to another spike in prices, with inventories at low levels following six months of drawdowns,’ said ANZ Group Holdings analysts Brian Martin and Daniel Hynes. ‘Investors are increasingly concerned that Iran will respond to the military build-up with attacks on US assets and energy infrastructure in the region.’