Oil Prices Rise as US-Iran Talks Stall and Drone Attacks Heighten Supply Risks

Fading hopes for a US–Iran agreement to reopen the strategically vital Strait of Hormuz have contributed to rising oil price risk premiums, according to FX Street. Commerzbank’s energy team highlights that Brent crude is approaching USD 90 per barrel, while gas oil prices near USD 1,350 per ton amid these geopolitical tensions.

Further adding to the risk premium are recent drone attacks targeting refineries in Saudi Arabia, Russia, and Libya. These incidents, combined with a tight diesel supply, have intensified concerns over energy security and market stability, FX Street reports.

For Japanese investors, who rely heavily on stable energy imports, these developments underline potential volatility in commodity markets and the importance of monitoring geopolitical risks that could impact FX and equity markets.