Oil holds gain with fresh US-Iran attacks, kazakh exports risk

Oil prices remain elevated as renewed U.S.-Iran tensions and threats to the Caspian Pipeline Consortium (CPC) infrastructure elevate geopolitical risks in major oil supply corridors. Brent crude continues in the low-$90s per barrel, reflecting market concerns over potential disruptions in Middle Eastern and Central Asian oil exports. The CPC, a critical route for Kazakhstan’s crude exports, has experienced halts due to recent tanker attacks, exacerbating supply concerns. These developments have contributed to a heightened geopolitical risk premium in the oil markets, as they threaten both Middle Eastern supplies and alternative routes like the CPC. This backdrop has led to increased attention on whether crude oil will reach a new all-time high by the end of the year, particularly as the market contemplates the potential impact of ongoing conflicts and supply chain vulnerabilities. Key Takeaways Pricing suggests market participants view geopolitical tensions as a factor supporting higher oil prices, consistent with increased risk premiums. Markets indicate a slight increase in the probability of crude oil reaching a new all-time high by December, with odds rising to 14.5% YES. Recen...