Today's markets analysis on behalf of Paolo Broccardo, CEO at BankPro '

(MENAFN- MENAFNEditorial) Crude oil prices were near multi-week highs as markets weigh elevated geopolitical risk against robust supply. The threat of shipping incidents in the Strait of Hormuz, alongside the potential for fresh escalation across the Middle East, continues to embed a risk premium in prices and keep traders cautious. At the same time, markets are assessing the implications of US sanction waivers on Russian energy exports. The decision could ease supply concerns.

While geopolitical tensions and the risk of shipping disruptions remain supportive for prices, strong crude export volumes from the Middle East are acting as a counterweight, capping upside momentum and limiting the scope for another sharp spike in prices.
In the near term, attention turns to the upcoming US inventory data. A sizeable drawdown in crude stocks could lend further support to the market, whereas an unexpectedly large build may weigh on prices.
Beyond the data, headline risk remains the dominant driver. Any further escalation or incidents in the region could push prices higher, while a diplomatic breakthrough could see the risk premium unwind, pulling prices lower. Against this backdrop, the risk of higher volatility remains present in the sessions ahead.

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