Brent crude tops $116 at six-month high as Middle East tensions build
Brent moved above $116 a barrel, its highest in six months, while President Trump accused Iran of trying to manipulate the oil market.
By BBCorp
What happened
Brent crude rose above $116 a barrel, reaching a six-month high, as tensions in the Middle East intensified.
On Thursday, U.S. President Donald Trump said Iran was attempting to manipulate the oil market.
Why it matters
Crude benchmarks are sensitive to geopolitical risk in the Middle East because the region accounts for a large share of global production and shipping routes. When supply security is questioned, energy prices tend to react first and with the most volatility.
Energy costs feed into headline inflation, which shapes expectations for central bank policy and therefore the dollar and other major currencies. Equity indices can be affected through transport, industrial and airline input costs, while energy producers may be influenced differently from the broader market. Gold is often watched during periods of political confrontation given its role as a reserve asset.
What to watch
Further statements from the U.S. administration on Iran and the oil market, and any developments in Middle East tensions that affect supply conditions.
Markets in play
- OilExposure: HighBrent is directly at the centre of the move and of the supply-risk narrative around the Middle East.
- GoldExposure: MediumGold is commonly exposed to shifts in geopolitical risk sentiment.
- USDExposure: MediumThe dollar is exposed through the link between energy prices, inflation expectations and policy outlook.
Gold