Oil moves above $100 as markets track Iran talks

The Guardian reports that Brent crude moved back above $100 a barrel on Tuesday after new U.S. strikes on Iranian targets reduced expectations for a quick diplomatic breakthrough. The move followed a recent pullback to about $97 a barrel on Monday, when traders had responded to reports that a deal could be close. Earlier in the crisis, prices had climbed above $126 as the Strait of Hormuz disruption limited energy flows from the Gulf.

The article notes that the shipping route previously handled about 20 million barrels of oil per day, while the current shutdown has removed 14.4 million barrels per day from prewar Gulf output. Emergency stockpile releases have helped offset part of the shortfall, but analysts cited by The Guardian said inventories remain very low. JP Morgan also said that even if flows normalize, the market could remain tight because storage levels have already been reduced.

For businesses and investors following oil and gas investing, the report highlights how geopolitical events, fuel demand, inventories, and infrastructure disruptions can influence global energy pricing. The article also pointed to pressure in European gas storage, with HSBC estimating reserves at 37% full, below the five-year average of about 50% for this time of year.

Source: The Guardian

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