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Brent rallies on US-Iran risk, Houthi blockade threats
Societe Generale said the front-month Brent contract rose 12% over the week, with most of the rebound coming after US and Iran strikes resumed.
Brent prices surged on heightened Middle East risk, with Societe Generale highlighting US-Iran tensions, Trump’s rhetoric about record strikes, and threats of a Houthi maritime blockade as drivers that lifted crude risk premia.
The bank said crack spreads in Asia and the US have outperformed, pointing to refined products staying tighter than crude. It also noted tanker data that crude has been dominating Strait of Hormuz flows, while LNG traffic has lagged.
Societe Generale attributed much of the move to the resumption of strikes by both the US and Iran earlier in the week, and added that a short-lived proposal about US fees for safe passage for commercial vessels also provided support. It said additional risks emerged after the Houthi group said it would impose a blockade on Saudi Arabia in response to what it described as Saudi actions around Sana’a.
Latest closeWTI crude $79.00 ▼0.8%|Brent $84.94 ▼0.0%