UBS says if the closure of Strait of Hormuz is extended beyond the next couple of weeks, Brent could see further upside north of USD 100/bbl

UBS's commentary highlights how geopolitical tensions, particularly in the Strait of Hormuz, could propel Brent crude prices above USD 100/bbl if disruptions extend beyond the short term. Their revised forecasts suggest a bullish outlook for oil prices in the near term, indicating heightened market sensitivity to supply-side risks, especially related to energy infrastructure attacks. This scenario is critical for traders as it may influence inflation and currency flows among energy-exporting and importing nations.