Brent crude prices saw an upward move in the last trading session, fluctuating within a 3% range between $75.35 at the sessionโs low to $77 per barrel.
This surge was primarily driven by renewed speculation over a potential reinstatement of maximum pressure sanctions on Iranian oil exports, which could lead to a sharp contraction in global supply, disrupting the balance in the energy markets.
Iran currently exports around 1.5 million barrels per day, and reduction in these volumes could have a meaningful impact on market dynamics.
Should these sanctions be reimposed, the resulting supply squeeze could sustain the upward momentum in oil prices, particularly amid slower-than-expected supply adjustments from OPEC+ producers.
While reports suggest that U.S. domestic oil production could increase by 500,000 barrels per day, discussions within the White House indicate uncertainty about Washingtonโs ability to fully offset the supply shortfall through additional domestic output.
As future production levels remain uncertain, oil prices are likely to stay highly sensitive to geopolitical developments, with a bullish bias favouring oil producers amid ongoing questions about the long-term balance between supply and demand in global energy markets.
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