(Bloomberg) — Oil gained as Israel’s vow to respond to an unprecedented attack by Iran added to geopolitical risks in the Middle East.
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West Texas Intermediate rose toward $86 a barrel after ending modestly lower on Monday, while global benchmark Brent settled just above $90. Top Israeli military officials said their country had no choice but to respond to Iran’s weekend strike even as European and US officials called for restraint.
Crude has rallied strongly this year, with OPEC+ supply cuts and geopolitical risks in Russia and the Middle East sending prices higher. Timespreads remain elevated, pointing to tight market conditions, while bullish oil call options — which profit from gains — are at a premium to the opposing puts. Calls traded at a record pace as investors sought hedges.
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