Brent crude oil has reached its highest level in seven months, climbing above $72 per barrel due to growing geopolitical tensions and unexpected supply disruptions. This surge is described as the strongest start to a year since 2022, which indicates a significant shift in the oil market dynamics. Analysts suggest that the increase is accompanied by a 'risk premium' that could add up to $10 per barrel, reflecting the uncertainty surrounding future supply levels.

The situation is exacerbated by the possibility of renewed U.S. military strikes against Iran, which has intensified caution among traders in futures and options markets. This development has led to a spike in hedging activities as market participants prepare for further price increases. According to Bloomberg, the number of open Brent futures contracts has reached a record high this year, suggesting that investors are concerned about potential disruptions in the oil supply.

Industry expert Gary Ross has highlighted the looming threat of war as a significant factor influencing current market conditions. The ongoing tensions and the strategic importance of the Strait of Hormuz, through which a considerable percentage of global oil passes, underscore the precarious nature of the current geopolitical landscape and its impact on oil prices.