Brent crude oil surpasses $105 per barrel as tensions escalate in the Middle East

(1) Brent crude oil rose above $105 per barrel on Thursday, extending the previous session’s 3.9% gain, as escalating tensions in the Middle East cast a shadow over diplomatic efforts to resolve the conflict. (2) Yahya Rahim Safavi, senior military adviser to Iran’s Supreme Leader, warned that if the United States or Israel launch further attacks, the conflict could expand from the Persian Gulf, Strait of Hormuz, and Red Sea to the Indian Ocean. (3) His remarks weakened the optimism surrounding discussions between the United States and Iran on the sidelines of the United Nations General Assembly. (4) Iranian President Masoud Pezeshkian stated that Tehran is ready to resume negotiations aimed at ending the conflict, but will not respond to threats. (5) He also said that as long as U.S. sanctions and blockades remain in place, Iran will restrict freedom of navigation in the Strait of Hormuz. (6) As Washington and Tehran continue to diverge on key issues affecting energy transportation, the oil market remains highly sensitive to any potential escalation.