🛢️ Brent crude has surged above $86, marking its highest level in around 40 days as geopolitical tensions continue to intensify.
The latest move comes after the 11th consecutive night of U.S. strikes on Iran, keeping traders focused on the risk of further escalation in the Middle East.
Markets are once again pricing in a higher geopolitical risk premium.
Any prolonged conflict involving Iran raises concerns about potential disruptions to global oil supply, especially with the Strait of Hormuz remaining one of the world's most critical energy routes.
The rally isn't being driven by stronger demand.
It's being driven by fear of tighter supply.
If tensions continue to escalate, Brent could remain well supported above current levels. However, any signs of de-escalation or diplomatic progress could quickly remove that risk premium and trigger a sharp pullback.
For now, oil traders are watching headlines more than charts.
The Middle East remains the biggest driver of crude prices.
Do you think Brent breaks above $90 next, or will geopolitical tensions cool before then? 👇
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