Oil hits multi‑week highs on Iran unrest and supply fears – OCBC

Oil markets have recently been significantly impacted by unrest in Iran and the threat of U.S. tariffs on countries trading with Tehran. This has led to oil prices rallying to multi-week highs, particularly Brent crude, which is approaching the mid-$60 levels. The situation poses risks of supply disruptions, adding a geopolitical risk premium to the crude markets. OCBC's FX analyst, Sim Moh Sion, emphasizes that the current scenario supports rising oil prices. As geopolitical uncertainties intensify, investors are adopting a more risk-averse stance, anticipating further price increases. Market participants must remain vigilant regarding supply-demand balances, especially with heightened sensitivity to Middle Eastern developments. These factors contribute to a highly volatile oil market and warrant close monitoring.