Deutsche Bank’s Early Morning Reid notes Brent Oil trading around $85 per barrel, with prices slightly higher at $85.12/bbl and on course for a first close above $85 in over a month. The report links this strength to ongoing Middle East tensions, including US–Iran strikes and potential Red Sea disruptions, reinforcing market worries about persistent inflation.

Brent holds above key $85 level

"In terms of the latest in the Middle East, oil prices oscillated back and forth through the day, as strikes between the US and Iran continued."

"Otherwise, there was also a Reuters report yesterday that Iran had asked its Houthi allies in Yemen to be ready to close the Red Sea oil route if the US struck Iran’s power network, which raised fears about further supply-chain disruption."

"And in the background, fears about rate hikes and more persistent inflation are still there, with Brent crude oil up another +1.06% this morning to $85.12/bbl."

"That would be its first close above $85/bbl in over a month, and that combination of concerns around tech and inflation has really put a dent in the more buoyant narrative after the soft US CPI report earlier this week."

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