US-Iran Tensions Cast Shadow Over Oil Markets Amid Escalation Fears

The recent US-Iran tensions have cast a shadow over oil markets, as experts warn that the situation is far from resolved. Following last weekend's exchange of attacks between the two nations, market participants are bracing for further escalation.

US President Donald Trump's statement that renewed attacks won't 'last too long' has added to concerns, while analysts at Deutsche Bank highlight the ongoing regional supply risks. Strategists at Commerzbank describe the situation as 'highly fluid', with little evidence of a durable de-escalation.

WTI oil prices have been affected, dropping to near $88.65 but struggling to move above the $90 mark during the European trading session on Friday. Market participants are cautious about further military aggression between the US and Iran, which could disrupt energy flows through the Strait of Hormuz.