Brent climbs as US-Iran standoff deepens

The front-month ICE Brent contract has gained by $1.94/bbl on the day, to trade at $102.30/bbl at 09.00 GMT.

IMAGE: Oil pump jack. Getty Images

Upward pressure:

Brent crude’s price is trading above the $100/bbl mark for the first time in two months, as the global oil market continues to price in persistent geopolitical risk, with tensions between the US and Iran showing no viable path to de‑escalation.

“If anything, current signals point to further escalation, keeping upside pressure firmly in place,” two analysts from ING Bank said.

The US Central Command (CENTCOM) said it has destroyed 10 Iranian oil tankers over the past week that were part of Tehran’s “multibillion-dollar” shadow fleet network funding the IRGC.

“Oil prices continued to climb, with Brent breaking above $100/bbl, as prospects for de-escalation between the US and Iran remained elusive, raising concerns over the security of energy flows,” ING Bank’s analysts said.

Downward pressure:

While Brent’s price is under limited downward pressures today, market participants await US Energy Information Administration (EIA) crude inventory data, scheduled for release tomorrow.

A build in US crude stocks typically indicates lower demand for oil and can exert downward pressure on Brent's price.

The crude stocks report has been delayed this week due to the US Labour Day holiday.

By Aparupa Mazumder

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