Brent: Geopolitics and tariffs drive volatility – Deutsche Bank

Deutsche Bank analysts note that Brent Oil has pulled back after a sharp two‑day surge driven by US–Iran tensions. The report notes that some weekend risk premium is being unwound even as reports suggest potential US strikes on Iran. The bank also recalls Brent’s strongest two‑day jump since October 2025 on escalating rhetoric toward Tehran.

Risk premium unwinds after sharp spike

"The talks come amid a recent buildup of US forces in the region and yesterday the New York Times was the latest outlet to report that Trump is considering an initial targeted strike against Iran in the coming days, which could be followed by a larger attack if Iran does not give in to US nuclear demands."

"Brent oil prices are -1.21% lower this morning trading at $70.85/bbl as we go to press as some of the weekend risk premium is being unwound."

"Finally, oil saw its largest two-day jump since October 2025, as reports circulated that a conflict between the US and Iran could be imminent and Trump escalated his rhetoric against Tehran. Brent crude rose +5.92% over the week (+0.14% on Friday)."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)