Geopolitical tensions push brent above $70 amid Iran fears

Brent crude futures climbed to around $70 a barrel, the highest level since late September, amid rising geopolitical tensions between the United States and Iran. Hence, Donald Trump has threatened Iran to agree to a nuclear deal or face potential military action.

In addition, the American president also mentioned deploying naval forces to the region, raising fears of supply disruptions from the Middle East. Brent briefly traded above $70.30 per barrel, while U.S. West Texas Intermediate rose above $65. Both benchmarks reached multi-month highs as traders priced in the heightened geopolitical risk.The rally comes amid broader market expectations that oil prices, which had been under pressure from oversupply earlier in the year, are now being supported by fears of conflict-related disruptions.

Iran is a significant crude producer, and any conflict or retaliation that affects oil flows, particularly through strategic routes such as the Strait of Hormuz, could further boost prices. Investors have also responded in the options market, with bullish positions rising as traders seek protection against further price spikes if tensions escalate. Despite ongoing concerns about oversupply, the current geopolitical backdrop has reshaped sentiment and contributed to stronger crude markets this week.

Benedetta Zimone