Middle East Tensions Push Oil Prices to New Highs

Fears of a broader conflict involving Israel and Iran have caused significant fluctuations in the oil market, with prices rising sharply amid geopolitical uncertainty.

Oil prices have seen their steepest weekly rise in over a year due to escalating tensions between Israel and Iran, with Brent crude nearing $80 per barrel.
Traders are increasingly hedging against the possibility of oil prices reaching $100 per barrel as the conflict threatens to disrupt supply from the Middle East.
Despite the volatility, some analysts believe the market is underestimating the geopolitical risks, as algorithmic trading may not fully account for potential supply shocks.
U.S. President Joe Biden has discouraged Israel from targeting Iranian oil facilities, but Israel's potential retaliation for Iran's missile attack remains a concern.
OPEC+ holds significant spare capacity to offset potential disruptions, but a full-scale conflict could still lead to substantial supply challenges and further price spikes.