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Hopes for a U.S.-Iran ceasefire dashed! Brent crude briefly rebounded to the $95 mark as geopolitical risk premiums return in full force.
Escalating U.S.-Iran tensions and the near-collapse of negotiations have prompted markets to reprice the risk of prolonged energy supply disruptions. Brent crude has surged past $95 per barrel, as fears of a potential blockade of the Strait of Hormuz have driven up oil and gas prices, inflation expectations, and U.S. Treasury yields in tandem. Geopolitical risk premiums are now becoming the new core pricing factor in global energy markets.
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