Brent crude nears first $85 close in over a month as US-Iran strikes and Red Sea risks fuel supply disruption concerns.
Brent crude oil climbed to $85.12 per barrel, up 1.06% on the day, poised for its first close above $85 in over a month. The rally stems from escalating Middle East tensions, including US-Iran strikes and threats to Red Sea shipping routes, raising fears of supply chain disruptions.
Prices held above the key $85 level despite intra-day volatility, with markets reacting to reports that Iran may direct Houthi allies to block the Red Sea if US strikes target its power network. The move adds to inflation concerns, countering recent optimism from softer US CPI data.
The shift in sentiment has dampened risk appetite, with investors weighing persistent inflation risks against geopolitical uncertainties.