Traders are increasingly betting on a sharp rise in oil prices amid fears of a potential conflict between Israel and Iran.
Today, the volume of Brent crude call options trades hit a record high, with many speculating that crude prices could reach $100 a barrel.
Brent crude, the global benchmark, has surged nearly 6% to just below $75 a barrel after Iran launched missiles at Israel on Tuesday, having dropped to as low as $70 earlier in the week.
Saxo analysts commented, “Geopolitical risks in the Middle East will continue to support oil prices in the short term.”
Matt Britzman, senior equity analyst at Hargreaves Lansdown, added, “Brent oil continues its recent rally, now trading close to $75 a barrel and rising for the third consecutive session.
Escalating tensions in the Middle East, along with the possibility of an Israeli response against Iran, are keeping the market focused on supply concerns as traders evaluate potential disruptions to oil production or supply routes in Iran and the broader region.”
