Geopolitical risks in the Middle East drive crude prices higher as military exchanges between the US and Iran escalate.
Oil futures climbed after the US conducted strikes on an Iranian military site, prompting Iran to retaliate by targeting a US airbase. The exchange heightened concerns over supply disruptions in the region, pushing crude prices upward.
Prior to the latest escalation, oil markets had been volatile due to ongoing tensions in the Middle East, including attacks on shipping routes. Analysts had expected geopolitical risks to remain a key driver of price movements in the near term.
The immediate market reaction saw front-month Brent and WTI contracts rise, reflecting investor caution over potential supply chain disruptions.