US-Iran Conflict Continues to Fuel Oil Price Increases

Oil prices have continued to rise as tensions between the US and Iran remain high. On Friday, reports emerged of Iranian ballistic missile launches, which have intensified fears of prolonged supply disruptions in the Strait of Hormuz.

The increase in the risk premium has kept oil prices supported, with OPEC+ keeping October output unchanged over the weekend due to reduced ability to influence physical oil supply and prices.

Market participants are waiting for signs of de-escalation from US-Iran conflict before positioning for lower prices. If the situation escalates further, WTI oil may break above its July high and target $100 per barrel.