Deutsche Bank’s Henry Allen and colleagues note Brent Oil has broken above $100 per barrel for the first time since July as US-Iran strikes escalate and concerns grow over the Strait of Hormuz reopening. The bank highlights that investors are now pricing a more protracted period of high Oil prices, with 6‑month Brent futures also reaching their highest level since early June.

Geopolitics fuel extended oil rally

“Markets had another eventful session yesterday, with stagflation fears mounting after Brent crude oil moved above $100/bbl for the first time since July.”

“As in recent days, the main catalyst for the oil move was the latest US-Iran strikes.”

“So that raised doubts that the Strait of Hormuz would reopen soon, and there was a separate WSJ report overnight that White House advisers had privately raised the prospect with President Trump that the war could continue for the remainder of his term. So Brent crude (+3.36%) jumped to $101.21/bbl by the close, its highest level since May.”

“And investors also moved to price in a more protracted period of high oil prices, with the 6-month Brent future (+1.55%) rising to its highest since early June, at $86.09/bbl.”

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)