Snapshot: Brent Crude is trading at $104.29, up 0.13%, as escalating tensions in the Middle East, specifically President Trump’s rejection of Iran’s peace proposal and drone attacks near Qatar, raise concerns about supply disruptions through the Strait of Hormuz. Saudi Aramco’s report of increased pipeline capacity offers some offset to the geopolitical risk premium.
- Watch for further developments in the Iran situation; a break above $105.97 could signal further upside.
- Risk: A de-escalation in the Middle East could lead to a rapid pullback in Brent.
Bias into NY: Expect continued choppy trading in Brent with an upward bias toward $105.50, driven by ongoing supply-disruption risk premium, even as the DXY remains steady at 97.87 and US yields consolidate.