Comment: Oil prices jump amid Israel-Iran conflict

Nikos Tzabouras, Senior Market Analyst at Tradu.com, commented:

“Oil prices rise as geopolitical risk premiums spike following Israeli strikes on Iran and Tehran’s swift retaliation. However, sustained upside would require actual disruptions to physical flows – such as damage to Iran’s oil infrastructure or a blockade of the Strait of Hormuz, a key global chokepoint.

“The US denial of involvement offers a possible offramp, keeping hopes alive for a contained conflict and continuation of nuclear talks, which could pressure oil. Furthermore, higher oil prices complicate the US President’s push to tame inflation and his preference for lower interest rates.”