Speculators cut net long positions in ICE Brent despite rising prices amid US-Iran hostilities and supply risks.
Brent crude prices surged nearly 4% as geopolitical tensions in the Persian Gulf intensified, disrupting transit through the Strait of Hormuz. The rise follows weekend strikes between the US and Iran, heightening supply concerns.
Speculators reduced net long positions in ICE Brent by 547 lots to 55,087 lots last week, reflecting caution despite higher prices. The IEA forecasts a gradual demand recovery, with year-on-year declines narrowing from 4.8m barrels per day in 2Q26 to 1.2m b/d growth in 4Q26.
Global oil supply rose by 4.1m barrels per day in June, pushing inventories higher. Analysts warn that further US-Iran developments could dictate supply risks and demand trends.