Oil rises as US-Iran tensions revive Strait of Hormuz risk – BNY

BNY Markets strategist Geoff Yu highlighted that escalating friction between the US and Iran is putting the Strait of Hormuz back in focus for energy traders. The chokepoint carries significant weight for global oil supply, and the renewed geopolitical risk has driven Brent and WTI prices higher.

Yu noted that markets are now recalibrating their macro outlook to account for potential supply disruptions. This reassessment could spill over into other risk assets if tensions persist, but for now the energy complex is the primary beneficiary.

The comment comes as the White House adopts a tougher stance toward Tehran, reviving concerns that shipping through the strait could be threatened. No specific military incidents have been cited, but traders are pricing in a wider risk premium.