Iranian Strikes Boost Brent to $76, but Upside Capped – DBS
DBS notes that Iranian attacks on shipping in the Strait of Hormuz pushed Brent crude from $72 to $76 and lifted US 2Y yields, but markets still see no return to full-scale war, keeping oil prices capped.
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According to DBS Group Research, recent Iranian strikes on vessels in the Strait of Hormuz drove Brent crude from $72 to $76 per barrel. The geopolitical risk also pushed US Treasury 2-year yields higher.
However, Philip Wee of DBS notes that markets do not anticipate an escalation to a full-scale conflict, which limits further upside for oil. Brent remains capped near current levels as the risk premium is considered temporary.
Source: FXStreet Forex News