Market Update: Geopolitical Tensions Push Oil Prices Past $90

Global markets are on edge as escalating geopolitical tensions in the Middle East drive a significant surge in oil prices, raising concerns about extended conflict and supply chain disruptions. This follows continuous U.S. military action against Iranian targets, sparking increased regional volatility.

• U.S. military strikes against Iranian targets continued for a ninth consecutive night, escalating regional conflict worries and pushing international benchmark Brent crude above $90 per barrel for the first time since June 11.
• The heightened tensions in the Middle East have sent U.S. West Texas Intermediate futures to their highest in over a month, trading at $84.68 a barrel, with maritime risk firms warning of a “worst-case scenario” for oil tankers in the critical Strait of Hormuz.
• The ongoing conflict has claimed more U.S. service members’ lives, prompting Iran’s Supreme Leader to threaten “unforgettable lessons” for the U.S. and leading to the suspension of commitments to a recent memorandum of understanding.
• Taiwan Semiconductor Manufacturing Co. (TSMC) is accelerating the expansion of its Arizona factory with an additional $100 billion investment to capitalize on a multi-year “megatrend” in AI demand.
• In the UK, Labour Party leader Andy Burnham is set to become the seventh Prime Minister in a decade, taking over from Keir Starmer following significant local election losses and internal party rebellion.