Brent rebounds over 4% as Persian Gulf risks flare again

Brent crude prices climbed more than 4% on Thursday, according to ING strategists Warren Patterson and Ewa Manthey, erasing much of the prior session’s declines. The sharp bounce came as geopolitical tensions in the Middle East flared again. Reports indicated renewed attacks on U.S. military personnel and Saudi Arabian energy infrastructure, undermining recent optimism around a diplomatic breakthrough between Washington and Tehran. "Renewed attacks on US troops and Saudi energy infrastructure undermine prospects for a US–Iran de-escalation," the ING note stated. The hostilities have reintroduced a supply-disruption risk premium into the oil market, supporting prices near the top of the week’s range.