Oil prices have moved higher as investors weigh the impact of renewed geopolitical tensions and signs of firming global demand. Brent and West Texas Intermediate have both advanced to four-month highs, supported by concerns around US–Iran relations and shifting consumption trends in key markets.
The risk premium in crude has widened following reports of growing friction between Washington and Tehran. With diplomatic talks at a standstill, the potential for instability in the Middle East has resurfaced as a market driver. The Strait of Hormuz remains a particular point of focus, as around 20% of the world’s oil supply flows through this narrow shipping route.
At the same time, demand indicators have turned more supportive. Indian refiners have increased their buying activity, shifting some purchases away from discounted Russian barrels and returning to Middle Eastern suppliers. Seasonal factors, including travel-related fuel consumption in Asia, are also helping to underpin expectations of stronger short-term demand.
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