As Iran proxies activate in Yemen and Iraq, Trump’s Mideast morass deepens

Iranian proxies have reportedly blocked key energy routes in Yemen and Iraq, exacerbating tensions in the Middle East and contributing to rising oil prices. This development has intensified concerns over global energy supply disruptions, with Brent crude recently above $104 per barrel. The heightened risk has led to increased speculation about the potential for crude oil to reach a new all-time high, especially as geopolitical tensions escalate around critical shipping chokepoints such as the Strait of Hormuz and Bab el-Mandeb. Key Takeaways Market activity appears consistent with increased speculation of crude oil reaching a new all-time high, following reports of blocked energy routes by Iran proxies. Current pricing reflects heightened supply-risk perceptions, with Brent crude over $104 per barrel amid regional tensions. The probability of oil reaching a new high by December 31 is currently priced at 15% YES, suggesting markets anticipate significant developments in the coming months. What to Watch Observers will be closely monitoring any further actions by Iran proxies and the potential impact on the Strait of Hormuz and Bab el-Mandeb, key routes for global oil supply. Statemen...