Oil prices rise on geopolitical tensions: Brent hits $107.97 per barrel

Oil prices climbed on April 27 as stalled peace negotiations between the United States and Iran led to further reductions in energy exports from the Middle East.

Brent crude futures rose by more than 2%, reaching a three-week high of $107.97 per barrel during Asian trading, Caliber.Az reports, citing Reuters.

The surge has triggered renewed concerns over inflation, prompting traders to largely price out the possibility of interest rate cuts in developed markets this year.

S&P 500 futures fluctuated during Asian trading but held a modest gain of around 0.2%, after markets in Taiwan, Tokyo, and Seoul followed Wall Street to record highs driven by renewed optimism around artificial intelligence.

Although a ceasefire has largely halted fighting in the two-month conflict that followed U.S.-Israeli strikes on Iran, markets remain focused on the closed Strait of Hormuz, through which nearly all seaborne oil and gas shipments pass.

The average price of liquefied natural gas (LNG) deliveries to Northeast Asia for June stood at $16.70 per million British thermal units last week, nearly 61% above pre-war levels.

Meanwhile, analysts at Goldman Sachs raised their Brent crude forecast for the end of the year from $80 to $90 per barrel, citing expectations that exports from Gulf countries will return to normal levels by the end of June.

By Bakhtiyar Abbasov