Brent crude oil futures rose above $77 per barrel on Thursday, climbing to an over four-month high, driven by elevated geopolitical risks. Reports indicated that Israel attacked Iran’s Arak heavy water reactor early Thursday, following Israeli President Isaac Herzog’s statement about dismantling Iran’s nuclear program. Adding to tensions, senior US officials are reportedly preparing for a possible strike on Iran in the coming days, signaling Washington’s readiness to enter the conflict.
However, mixed signals remain, as the White House has given little indication of whether the US would support strikes on Tehran’s nuclear facilities. The main concern for the oil market remains the Strait of Hormuz, a vital route for a fifth of global crude. Separately, the Federal Reserve kept interest rates steady on Wednesday but signaled two possible cuts by year-end, potentially supporting economic growth and boosting oil demand.
