With the resurgence of the US-Iran conflict, crude oil is expected to record its biggest weekly gain since July. The trading price of Brent crude oil surpassed 95 US dollars per barrel, with a cumulative increase of about 7% this week; West Texas Light crude oil was higher than 91 US dollars per barrel. The situation suddenly became tense after a period of relative easing. The US bombed earlier this week, and Iran immediately retaliated against the US military base in the region. The conflict heightened market concerns over the interruption of energy transportation in the Strait of Hormuz. Iran's armed forces attacked shipping vessels and launched missiles at several countries. The crude oil market is “repricing its own vulnerability,” and in a context where core safety issues have not been resolved, there is very limited room for risk premium compression.

With the resurgence of the US-Iran conflict, crude oil is expected to record its biggest weekly gain since July. The trading price of Brent crude oil surpassed 95 US dollars per barrel, with a cumulative increase of about 7% this week; West Texas Light crude oil was higher than 91 US dollars per barrel. The situation suddenly became tense after a period of relative easing. The US bombed earlier this week, and Iran immediately retaliated against the US military base in the region. The conflict heightened market concerns over the interruption of energy transportation in the Strait of Hormuz. Iran's armed forces attacked shipping vessels and launched missiles at several countries. The crude oil market is “repricing its own vulnerability,” and in a context where core safety issues have not been resolved, there is very limited room for risk premium compression.