Oil hits five-month high amid fears US will renew strikes on Iran

AI desk brief

Brent crude rose 1% to $114.72/bbl, its highest since May, as markets priced a greater risk of fresh US-Israeli strikes on Iran after Tehran threatened retaliation against Gulf energy and infrastructure targets. The move extends the Middle East risk premium, with oil already up sharply from around $72/bbl in February before the war began to $126/bbl by end-April.

The article also flags rising tensions around the Strait of Hormuz, Houthi attacks on Saudi facilities, US diplomatic withdrawals from Saudi Arabia, and Ukraine strikes on Russian diesel refineries. For precious metals, the direct channel is higher inflation expectations and broader geopolitical risk support, which is mildly bullish for gold as a hedge if energy shocks persist.