Oil Supported by Diplomatic Risk, BNY Says

BNY's Geoff Yu observed that oil prices remain supported by the prevailing diplomatic risk in the Middle East. Iran's signals of a sustained military response, coupled with ongoing mediation efforts, keep the conflict in a managed yet unstable equilibrium. This geopolitical backdrop is providing a floor for crude prices, even as other factors weigh on the market. The persistent tension suggests that any escalation could quickly drive prices higher, while a resolution might lead to a sharp decline.