Brent: Oil climbs on Middle East tensions – Deutsche Bank

Deutsche Bank’s Early Morning Reid highlights renewed upside in Brent Oil as US-Iran negotiations show little progress and Iran refuses to soften conditions on reopening the Strait of Hormuz. Brent is trading above $107 this morning after a modest weekly gain, with the bank linking recent moves to Middle East risks and evolving headlines around technical talks between US and Iranian officials.

Brent supported by geopolitical risk

"Talking of an end to the Iran conflict, even though US-Iran talks could resume this week, there was little sign of a breakthrough over the weekend and bond yields and oil have climbed again this morning."

"Iran reiterated on Sunday that it would not soften its conditions for reopening the Strait of Hormuz, with Foreign Minister Abbas Araghchi insisting that Tehran would not back down from demands including sanctions relief, access to frozen assets and an end to US blockade measures."

"10yr US yields are +3.8bps higher this morning with 2yr yields 4.6bps +higher. Brent is up +2.58% to $107.01."