The Geopolitical Risk Premium Is Back as Oil Prices Climb

Geopolitical Tensions Drive Oil Higher Crude oil futures are set to close over 2% higher this week, primarily driven by escalating tensions between Israel and Hezbollah. The market has largely shrugged off soft U.S. gasoline demand, focusing instead on potential supply disruptions in the Middle East. This price movement underscores the oil market's sensitivity to geopolitical risks, especially in key producing regions. Middle East Conflict Risks Israel has deployed troops to its northern border as attacks from Lebanon have surged. RBC Capital Markets…