Traders appear to be hedging against worst-case scenario of a conflict between the two nations, analyst says
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Oil prices have reached seven-month highs, as traders reacted to heightened tensions between the US and Iran ahead of nuclear talks this week.
US crude futures rose to $67.28 a barrel on Monday, while Brent crude touched its highest level since 31 July at $72.50 a barrel. Prices fell back late in the session, but were up again on Tuesday morning, approaching Monday’s highs.
James Hosie, a research analyst at Shore Capital, said oil markets were “rationally trying to price in a risk premium for oil prices, given the disruption a conflict could have on global supplies”.
