Oil prices have risen for the second consecutive day as traders cautiously monitor possible developments indicating a potential attack on Israel by Iran or its proxies, signaling a major escalation of tensions in the Middle East. Brent crude futures are heading towards $91 per barrel after closing up 1.1% yesterday, while West Texas Intermediate is trading above $86. According to informed sources, the United States and its allies are seen as a potential target amid rising threats from Iran to strike Israel in retaliation for last week’s attack on a diplomatic compound in Syria.
Despite the geopolitical tensions and tightening supplies from OPEC+, oil prices have increased by 18% this year. However, there are factors pressuring prices in the opposite direction, such as rising U.S. crude inventories, which are now at their highest levels since July, and accelerating inflation in the United States, which may delay interest rate cuts from the Federal Reserve. Some of the world’s top traders and Wall Street banks are overlooking these headwinds, emphasizing bullish price forecasts with the possibility of global Brent returning to the $100 level.
On the other hand, the Macquarie Group has predicted that crude will enter a downward phase in the second half of the year, warning that current gains may not be sustained unless geopolitical tensions lead to real impacts on supply.
