Deutsche Bank analysts note that Brent Oil has stabilised after its strongest two‑day gain since 2020, but remains driven by fast‑moving geopolitical risks. Brent rising back above $83.99/bbl as tensions between the US and Iran persisted and uncertainty over the Strait of Hormuz and Chinese export behaviour supported higher Oil prices.

Geopolitics keeps Brent on edge

"Markets finally showed signs of stabilising yesterday, with investor fears easing thanks to a strong batch of US data, and the absence of any major escalations in the Middle East. Brent crude held steady at $81.40/bbl, having just seen its strongest two-day gain since 2020 at the start of the week."

"However, even as a lot of key assets began to recover, the geopolitical situation is clearly moving fast, and oil prices are moving up again overnight, with Brent back up +3.18% to $83.99/bbl."

"So while broader market contagion has eased somewhat, we’ve seen no signs of de-escalation yet, and oil prices are continuing to move higher."

"There’s also uncertainty on when shipping will resume through the Strait of Hormuz, and we’ve seen signs of oil importers beginning to adjust behaviour."

"For example, Bloomberg reported overnight that China had told the biggest oil refiners to suspend exports of diesel and gasoline."

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