Middle East tensions drive Brent crude above $100 amid supply fears

The conflict in the Middle East is intensifying, impacting global oil markets and prompting reactions from US political and military sectors. This escalation is particularly focused on the U.S.-Iran confrontation, with recent attacks on shipping and oil infrastructure heightening supply concerns. Brent crude prices have surged above $100 a barrel, reflecting ongoing fears of disruption. The regional equity markets are under pressure, with most indexes experiencing downturns as investor caution rises. These developments are contributing to a shift in market dynamics, with increased liquidity demands observed. Key Takeaways Market pricing suggests a potential increase in crude oil prices, with the probability of reaching a new all-time high by September 30 currently at 0.7% YES. Recent geopolitical tensions in the Middle East appear consistent with scenarios that could lead to further disruptions in oil supply chains. The likelihood of US-Iran reconstruction funding being part of a deal in 2026 has seen a modest increase, currently at 15.5% YES, indicating heightened interest in potential diplomatic resolutions. What to Watch Markets are closely monitoring developments in the Middle ...