Tensions between Iran and Israel heighten fears of oil supply disruptions

Two years of escalating tensions in the Middle East have made oil traders increasingly wary of supply disruptions. While energy flows remained stable even during past regional conflicts, the latest rift between Iran and Israel is once again rattling market confidence, Bloomberg reports.

So far, the conflict hasn’t directly impacted supply volumes, according to the news agency. But it has already triggered sharp price swings, adding to traders’ concerns over crude oversupply and the recent slump in oil prices.

As noted by Bloomberg, rising output from OPEC+ nations, along with increased production in Brazil and Guyana, is weighing on demand amid ongoing trade tensions. While the market is expected to adjust over time, the current uncertainty is forcing traders to consider different scenarios. At the end of last week, many held back from risky deals, wary of sharp market swings. Despite this, Brent crude prices showed steady gains, climbing to $74 a barrel.