Brent prices rise amid geopolitical tensions - Commerzbank

Brent Oil gained 4% to USD113.17. Commerzbank’s FX Research team attributes the rise to fears of supply disruption following attacks on Saudi Arabian infrastructure. Geopolitical uncertainty increased further on reports of possible renewed US and Israeli strikes on Iran after the US mid-term elections. Higher Oil prices are clouding the outlook for global growth and inflation, the authors emphasise.

Oil prices supported by geopolitical risks

"Oil prices rose sharply as attacks on Saudi Arabian infrastructure heightened concerns over potential supply disruptions. Separately, reports that the US and Israel were considering renewed strikes on Iran after the US mid-term elections added to geopolitical uncertainty, although no such operation has been confirmed."

"Brent crude oil prices rose 4% to USD113.17."

"Higher oil prices and geopolitical uncertainty also complicate the outlook, potentially raising inflation while weighing on consumption."

"The sharp drop in US Treasury yields despite higher oil prices was a notable shift from recent weeks, when rising oil prices had pushed yields higher due to inflation concerns."

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