Oil: Prices supported by Iran conflict escalation – Danske Bank

FXStreet Insights Team FXStreet

Danske Research Team notes that Iran’s Revolutionary Guard has declared the Strait of Hormuz closed and reported attacks on vessels, while the US launched new strikes on Iranian targets. Brent crude has climbed toward USD 95/bbl on these developments.

Strait of Hormuz tensions lift Brent

"In the Iran-war, Iran's Revolutionary Guard declared the Strait of Hormuz closed and threatened to target any vessel attempting to transit, reporting that two ships were fired upon, although US Central Command said commercial traffic "was continuing to transit in and out of the Strait"."

"While the US launched new strikes on Iranian military assets inside Iran, Iran claimed drone and missile attacks on multiple US bases in Kuwait, Bahrain and Jordan."

"Trump grew tired of waiting for his 'deal' and has ordered new strikes against "multiple" targets in Iran overnight. In an interview following the strikes, Trump also added that the attacks would continue should a deal not be reached today. According to state-run TV in Iran, the Strait of Hormuz has been completely closed in response."

"Oil prices rose on the news, with Brent crude almost at USD 95/bbl."

"Despite this escalation, price action through the night has been relatively modest although Brent crude is moving higher."

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

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD stays defensive near 1.3300 amid pre-Fed market caution

GBP/USD stays defensive near 1.3300 in the European session on Tuesday. The pair struggles as the US Dollar (USD) sits at monthly highs amid market caution ahead of the two-day US Federal Reserve monetary policy meeting, starting later this Tuesday.

EUR/USD hangs close to monthly lows near 1.1350 on USD strength

EUR/USD is consolidating near the monthly trough, trading near mid-1.1300s in the European morning on Tuesday, undermined by persistent US Dollar demand. Traders seem hesitant and await the outcome of a two-day FOMC policy meeting before placing aggressive directional bets.

Gold languishes near $4,000 ahead of FOMC decision

Gold (XAU/USD) maintains its offered tone through thef the European session on Tuesday and currently nears the $4,000 psychological level. This follows the previous day's failure to find acceptance above the $4,100 mark and suggests that the path of least resistance for the bullion remains to the downside amid a bullish US Dollar (USD) undertone.

Bitcoin slips below $64,000 as risk-off sentiment grips markets

Bitcoin (BTC) is extending its correction, trading below $64,000 at the time of writing on Tuesday after losses of over 2.5% the previous day. Institutional demand shows early signs of weakness, with spot Exchange Traded Funds (ETFs) recording a mild outflow on Monday, marking three consecutive days of withdrawals.

Indian Rupee outlook: Downtrend set to persist – Just at a slower pace

The Indian Rupee just endured its most brutal six-month stretch in years, battered by a perfect storm of global shocks. From United States (US)-India trade uncertainty to surging Oil prices and the significant outflow of Foreign Institutional Investment (FII) from the Indian stock market, every event brought nothing but pain for the Indian currency.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.