Oil Extends Rally On Supply Disruption Fears

The U.S.-Israel war with Iran entered its third week, described as triggering the largest disruption to global oil markets, and oil prices continued to move higher. Expect sustained oil-price upside and elevated market volatility, which is likely to be inflationary and drive risk-off positioning—benefiting energy producers while pressuring oil-importing sectors and global supply chains.

Analysis

The U.S.-Israel war with Iran entered its third week, described as triggering the largest disruption to global oil markets, and oil prices continued to move higher. Expect sustained oil-price upside and elevated market volatility, which is likely to be inflationary and drive risk-off positioning—benefiting energy producers while pressuring oil-importing sectors and global supply chains.