Brent oil hits $117 as US-Iran conflict fears escalate

Brent crude oil prices surged to $117, the highest level since May, driven by escalating fears of a military conflict between the United States and Iran. The rally, which began from a July low of $70, is expected to continue in the coming weeks. Reports indicate the US and Israel are preparing a major attack on Iranian infrastructure, potentially targeting Kharg Island, which handles over 90% of Iran's oil exports. Iran has warned it will strike energy facilities in neighboring countries, including Saudi Arabia and the UAE, while ongoing attacks on ships in the Strait of Hormuz have added to supply concerns. Technical analysis shows Brent breaking above the $109.96 resistance level and trading above its 50-day EMA, with bullish momentum suggesting a potential move toward $120. A key risk is a negotiated de-escalation that avoids attacks on Iranian oil infrastructure and keeps shipping routes open.