Crude oil prices rise to five-month high due to Middle East conflict

(Patria) - Due to escalating tensions between Israel and Iran, oil prices reached $76.5 per barrel yesterday – the highest level in the past five months.

This increase is a consequence of investors' fears that armed conflicts could disrupt energy supplies through key maritime areas like the Strait of Hormuz.

Namely, both countries have intensified missile exchanges in recent days, with Israel claiming to have hit Iranian nuclear targets. At the same time, the rhetoric of US President Donald Trump has further raised concerns about a possible escalation that would affect global markets, including oil transport.

The fall of the US dollar this quarter has further amplified market uncertainty.

Investor distrust in US monetary policy has prompted a redirection of funds towards commodity currencies like oil.