Oil nears $92 as risk premium reemerges
Oil prices rose significantly, approaching $92 per barrel, the highest level in three weeks. This increase was driven by concerns over escalating tensions in the Middle East and the potential closure of the Strait of Hormuz, through which about one-fifth of global oil supplies pass. The ongoing uncertainty regarding the opening of the strait has heightened risk premiums, with Brent crude futures trading around $91.89 and West Texas Intermediate at $86.11. Concurrently, worries have intensified over the escalation of diplomatic and military conflict between Iran and the United States, amid stalled ceasefire negotiations and Iran’s hardening military rhetoric. These developments increase the likelihood of disruptions to global oil supplies. U.S. oil inventories also rose to 428.8 million barrels, alongside increased American refinery output. Nevertheless, geopolitical tensions continue to support oil prices, pushing them to higher levels.
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