Brent: Geopolitical risk drives price surge – Deutsche Bank
Deutsche Bank’s Henry Allen and colleagues note Brent Oil has broken above $100 per barrel for the first time since July as US-Iran strikes escalate and concerns grow over the Strait of Hormuz reopening.
Brent Oil has breached the $100 per barrel mark for the first time since July, driven by escalating US-Iran tensions and concerns over the reopening of the Strait of Hormuz. Deutsche Bank's Henry Allen and colleagues emphasize that investors are now anticipating a prolonged period of high oil prices, with 6-month Brent futures reaching their peak since early June.
The latest US-Iran strikes intensified fears, suggesting the Strait of Hormuz might not reopen soon. This led to a surge in Brent crude prices, climbing to $101.21 per barrel by the market close, a level not seen since May. The 6-month Brent futures also climbed to $86.09 per barrel. Investors are now pricing in a more extended period of high oil prices, with the 6-month futures hitting their highest point since early June.
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