"The rebound followed rising concerns that the Strait of Hormuz could remain disrupted for a longer period and that diplomatic talks were under threat."
"Looking ahead, oil markets are likely to remain highly sensitive to geopolitical developments in the Middle East."
"Elevated tensions could continue to drive prices higher, while any credible de-escalation or restoration of stable shipping conditions could trigger another sharp sell-off."
"Additionally, the physical market continues to see a significant tightness, which could leave the market exposed to big surges if no resolution is reached."
Oil prices increased on Monday after previous losses, driven by heightened geopolitical tensions in the Middle East. Concerns about potential disruptions in the Strait of Hormuz and threats to diplomatic talks contributed to this rebound. Following a brief period of optimism, the market remains sensitive to geopolitical developments. Elevated tensions may push prices higher, while any de-escalation could lead to significant sell-offs. The physical market is tight, leaving it vulnerable to price surges if energy exports from the region are limited.
Read at London Business News | Londonlovesbusiness.com
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