FX.co ★ Brent Climbs on Renewed US-Iran Tensions

Brent crude futures rose toward $97 per barrel on Thursday, rebounding from the previous session’s losses as renewed US–Iran hostilities dimmed expectations for an imminent peace deal that could end the conflict and reopen the Strait of Hormuz. US forces reportedly struck an Iranian military site deemed a threat to American troops and commercial shipping in the strait, and also intercepted several Iranian drones. In response, Iran’s Revolutionary Guard said it had targeted a US airbase, without disclosing its location. At the same time, Washington and Tehran remained divided over key issues in ongoing negotiations, including Iran’s demand to retain control of the strait and to preserve its nuclear program. Despite the latest escalation, oil prices remain on course for a second straight weekly decline, as markets continue to anticipate that both sides may ultimately reach a peace agreement and restore full access through the Strait of Hormuz.