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EMEA Oil Update: Brent Rebounds as US Strikes Reignite Middle East Tensions

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Brent futures gained on Tuesday following targeted US strikes in Iran, casting immediate doubt on a rumored 60-day ceasefire extension and further bewildering energy markets after talk of progress towards peace in recent days.

The Brent futures contract gained 2.4% to $98.44 per barrel. Murban futures closed at $92.82 on May 25 and were not trading by the time of publication of this oil price update.

Brent fell to its lowest in more than a month on Monday after US President Donald Trump and other officials said there had been some progress towards a basic peace deal with Iran.

Today's market reversal follows subsequent US military intervention in the Persian Gulf.

US Central Command forces launched targeted strikes against active missile launch sites in southern Iran and intercepted several fast-attack boats allegedly attempting to plant naval mines, experts noted.

While Washington continues to publicly insist that backstage peace negotiations in Qatar remain active, the strikes gave energy markets renewed reason for skepticism.

Compounding the geopolitical friction, Israeli forces simultaneously intensified cross-border offensives against Iran-backed Hezbollah units in Lebanon.

Saxo Bank analysts emphasized that even if diplomats successfully ink a peace treaty in Doha, the commercial recovery for energy infrastructure will be slow.

Saxo Bank analysts said, "While differences between the parties have narrowed, any eventual peace deal would likely lead only to a gradual reopening, meaning the current tight supply outlook could take months to normalize.

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