FX.co ★ Brent Crude Oil Hits $70

Brent crude oil futures have climbed over 2%, reaching approximately $70 per barrel. This marks the highest intraday level since September and is close to the strongest closing price observed since August, driven by heightened geopolitical risk premiums after renewed US threats directed at Iran. President Donald Trump has cautioned Tehran to either agree to a nuclear agreement or face potential military action, asserting that US naval forces stationed in the region are prepared for engagement if necessary. The looming possibility of a US military strike has sparked concern over possible disruptions to crude oil supplies from the Middle East, which constitutes roughly one-third of the global supply. Additionally, any retaliatory actions from Iran could jeopardize shipping activities through the Strait of Hormuz, a vital channel for oil and LNG shipments. Despite forecasts of increased supply, oil prices have surged this year, supported by geopolitical tensions tied to Iran and Venezuela, alongside supply interruptions in Kazakhstan. President Trump’s recent remarks have further underscored the increasing risks to upward price movements.