Oil extends climb on fears of escalating Middle East tensions

Core Viewpoint - Oil prices have increased due to heightened geopolitical tensions following the U.S. shooting down an Iranian drone and the approach of armed Iranian boats to a U.S.-flagged vessel in the Strait of Hormuz [1] Group 1 - The incident has reignited fears of an escalation in conflict in the region, which typically impacts oil supply and prices [1] - The U.S. military actions are likely to influence market sentiment and could lead to further volatility in oil prices [1]