Brent crude oil prices have surpassed $70 per barrel for the first time since September. A sharp price jump of 2.7% occurred after Donald Trump's tough ultimatum to the Iranian leadership, Bloomberg reports. American oil WTI has also increased, exceeding $65.
Citigroup analysts note that the threat of war has added $3–4 to the price of a barrel. The market is concerned about supply disruptions from the Middle East and a possible blockade of the Strait of Hormuz.
Traders are actively buying call options, hedging against the risks of conflict. Buyer activity in this segment is growing at the fastest pace in the last 6 years.
In addition to the Iranian crisis, supply disruptions from Kazakhstan and tensions in Venezuela are supporting prices. Iran, for its part, claims readiness for dialogue but warns that it will respond "with unprecedented force" in the event of aggression from Washington.
