International Oil Prices Continue to Rise, Brent Returns to $100 Mark

TradingKey - International oil prices continued their upward trajectory. As of the latest trading session, Brent crude broke through $100 per barrel, trading at $100.33, an intraday gain of over 3%; WTI crude rose 4.0% on the day to $93.94 per barrel.

Market expectations of tightening crude oil supply are strengthening. Analysts noted that the current rally in oil prices is primarily driven by heightened uncertainty in the Middle East. As the U.S.-Iran conflict shows no signs of meaningful de-escalation, market fears of potential disruptions to oil transport and production continue to escalate, pushing up risk premiums.

In addition, the market's reassessment of short-term supply and demand dynamics is amplifying price volatility. Should geopolitical conflicts escalate further or critical energy infrastructure be impacted, there remains further upside potential for oil prices.

The short-term trajectory of oil prices will remain heavily dependent on geopolitical developments, with market volatility likely to stay high. Currently, most risk assets besides oil are repricing in response to higher oil prices, most notably reflected in significant downward pressure on Asia-Pacific equities during their trading hours.

At the same time, futures for the three major U.S. stock indices extended their declines, continuing to trade under downward pressure.

Precious metals viewed as safe-haven assets, such as gold and silver, saw their losses widen further (the following refers to commodity futures price action).