Oil: Limited war risk keeps Brent capped – DBS
The post Oil: Limited war risk keeps Brent capped – DBS appeared on BitcoinEthereumNews.com. DBS Group Research’s Philip Wee notes that recent Iranian strikes on shipping in the Strait of Hormuz pushed Brent crude from $72 to $76 per barrel and lifted US Treasury 2Y yields, but markets still see no return to full-scale war. With Brent below $80 and far from $120, he argues oil-driven inflation and policy risks remain contained for now. Brent reacts to Hormuz tensions “Iran launched fresh strikes against commercial shipping vessels in the Strait of Hormuz, prompting the US Treasury Department to revoke licenses allowing Iran to sell oil globally.” “Brent crude surged from $72 to $76 per barrel on Tuesday, sending the US Treasury 2Y yield higher to 4.185% from 4.12%. With Brent still below $80, the 2Y yield was capped at June’s high of 4.234%.” “For now, the market is keeping to the playbook that Tehran and Washington are still in a high-stakes game to gain leverage during the temporary