Brent Strengthens, Hormuz a Trigger
Brent prices strengthened again in Wednesday's trading after tensions in the Middle East escalated. Brent traded around US$76 per barrel after the United States launched a new strike against Iran in retaliation for a ship attack in the Strait of Hormuz.
Brent's rise occurred as market concerns resurfaced over the security of global energy shipping routes. The Strait of Hormuz is one of the world's most important oil routes, so any attack on a ship in the region immediately triggers concerns about supply disruptions.
Sentiment intensified after the US Central Command announced it had attacked several Iranian targets, including defense facilities, coastal radars, anti-ship missile facilities, and vessels belonging to the Iranian Revolutionary Guard Corps (IRGC) near the Strait of Hormuz. This move increased the risk of a US-Iran conflict.
Previously, oil prices had been under pressure as the market began to anticipate a return to tighter global supply. Saudi Arabia cut its oil selling prices to Asia, while OPEC+ signaled increased production. However, the latest escalation in Hormuz has caused the market to re-incorporate a geopolitical risk premium into oil prices.
Looking ahead, Brent is likely to remain volatile. If the attacks in Hormuz continue or Iran retaliates, Brent could retest the **US$77–80 per barrel** area. However, if the situation calms quickly and ship traffic continues, Brent's gains could be restrained as the market remains overshadowed by the risk of oversupply. (asd)*
Source: Newsmaker.id
