Oil prices are experiencing significant volatility, with West Texas Intermediate and Brent crude showing substantial monthly gains as tensions escalate between the US and Iran.

Context

The ongoing conflict between the US and Iran has created uncertainty in oil supply, impacting market prices significantly.S1S2

Key points

• West Texas Intermediate is holding near $84 a barrel after a week of price fluctuations.S1

• Brent crude settled around $89 a barrel in the previous session.S1

• The US crude marker has increased by about a fifth for the month, marking the largest monthly gain since March.S1S2

• The US and Iran exchanged strikes recently, contributing to market volatility.S1

• Despite tensions, shipping through the Strait of Hormuz has reportedly increased in recent days.S1

• The oil market is reacting to geopolitical tensions, which often lead to price fluctuations.S2

• The current situation reflects broader concerns about global oil supply stability.S1

• Investors are closely monitoring developments in the US-Iran conflict as it affects oil prices.S2

Why it matters

• Rising oil prices can impact global economic conditions, influencing inflation and consumer spending.S1

• Increased volatility in oil prices can affect energy markets and related industries worldwide.S2

• The situation underscores the interconnectedness of geopolitical events and commodity markets.S1

What to watch

• Monitor further developments in the US-Iran conflict and their potential impact on oil supply.S1

• Watch for changes in shipping activity through the Strait of Hormuz as tensions evolve.S1

• Keep an eye on market reactions as new information about the conflict emerges.S2