Danske Research Team notes that Brent Oil has surged toward USD 96 per barrel after renewed Israel–Iran hostilities, with markets reassessing regional supply risks. They highlight that the latest air strikes have undermined hopes for a broader deal to reopen the Strait of Hormuz. Oil’s move is also framed against broader risk sentiment and upcoming United States (US) Consumer Price Index (CPI) and European Central Bank (ECB) events.

Brent spikes as Middle East tensions rise

"On the Iran war, Israel carried out overnight air strikes inside Iran after Tehran fired ballistic missiles at northern Israel on Sunday, the first such exchange since the April ceasefire. Iran's attack followed Israeli strikes on Beirut earlier in the day."

"US President Donald Trump said he had told Israel not to respond militarily and insisted the flare-up would not derail a potential US-Iran agreement."

"The escalation hit oil markets this morning, with Brent crude up about 3% to around USD 96/bbl, as hopes fade for a broader regional deal to reopen the Strait of Hormuz."

"Oil jumped overnight, with Brent at USD 96.5/bbl as the situation in the Middle East escalated with new air strikes between Israel and Iran."

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