Geopolitical tensions in Middle East escalate, impacting oil prices and market sentiment

Persistent geopolitical tensions in the Middle East, including US strikes in southern Iran and reports of Iran asking Houthi militia to prepare to close the Red Sea oil route if Iranian energy infrastructure is targeted, are contributing to cautious market sentiment. Brent crude prices have remained around $85.50 per barrel, with tanker traffic through the Strait of Hormuz reportedly at its lowest in three weeks. This escalation is seen as a potential new threat to global energy supplies and is influencing market behavior, with the US dollar strengthening due to safe-haven demand.