Brent Crude Surpasses $100 Amid Geopolitical Tensions

On April 27, Phillip Nova analyst Priyanka Sachdeva reported that Brent crude oil prices have exceeded $100 per barrel, signaling tightening supply. According to Jin10, geopolitical instability continues to contribute to a 'war premium,' with transportation through the Strait of Hormuz remaining restricted. The lack of progress in U.S.-Iran negotiations has heightened concerns about prolonged disruptions in Middle Eastern oil supply. Sachdeva noted that diplomatic setbacks are making the market more sensitive to geopolitical news rather than traditional supply and demand fundamentals. She warned that if oil prices continue to rise towards $110 to $120 per barrel, the downside risks to global economic growth could increase, particularly for economies reliant on oil imports.