Saudi oil strikes to drive up risk premium in crude market - S&P Global Platts

Dhwani Mehta FXStreet

Commenting on the weekend attack on the Saudi Arabian oil and gas facilities and its impact on the oil markets, Chris Midgley, Global Head of Analytics at S&P Global Platts, said attacks on Saudi oil plants have boosted concerns about supply security in the Middle East and should raise the risk premium in the global crude market, per Reuters.

Key Quotes:

“The sudden change in geopolitical risk warrants not only an elimination of the $5-10 a barrel discount on bearish sentiment, but adds a potential $5-10 a barrel premium to account for now-undeniably high Middle Eastern dangers to supply and the sudden elimination of spare capacity.”

“As such prices are likely to break out of the current $55-65 a barrel options range, to test the high $70s as currently supported by fundamentals.”

Yemen’s Houthi group claimed responsibility for Saturday’s attacks that knocked out more than half of Saudi oil output, or more than 5% of global supply.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

GBP/USD holds below 1.3400 after BoE decision, US Q2 GDP

GBP/USD peaked just above 1.3400 following the BoE's announcement. The Bank of England decided to maintain the benchmark rate unchanged at 3.75%. The MPC voted 6-3 to keep rates on hold, with the 3 dissenters favoring a rate hike. US Q2 GDP missing expectations helps maintain the pair afloat, although momentum is missing.

EUR/USD resumes advance following tepid US growth data

EUR/USD trimmed early losses and aims north in the American session on Thursday, helped by better-than-expected German and Eurozone GDP data and lower-than-anticipated US growth, according to the preliminary estimate of Q2 Gross Domestic Product. The economy expanded at an annual rate of 1.5% vs the 2.1% anticipated by market participants.

Gold stable below $4,100 as USD demand fades

Gold hovers around its daily open in the American session on Thursday, trimming early losses. The Greenback enjoyed some near-term demand following Wednesday's post-FOMC downfall, but was unable to retain its gains. The preliminary estimate of the US Q2 GDP showed the economy grew n annual rate of 1.5%, missing market's expectations of 2.1%

Ripple Price Forecast: XRP builds recovery momentum as whales increase exposure

Ripple (XRP) rises toward the pivotal $1.10 resistance on Thursday, marking three consecutive days of gains. This neutral-to-slightly bullish outlook follows the Federal Reserve (Fed) decision to leave interest rates unchanged in the 3.50%-3.75% range.

The FOMC: Rates left on hold; dollar falls as Warsh fails to vote for hike

The Fed kept interest rates on hold today, defying a 30% chance in the Fed Funds Futures market that rates would rise. The Committee voted 9-3 to keep rates on hold, with governors Kashkari, Hammack and Logan all voting to hike rates due to concerns about inflation. The immediate market reaction has been a sharp drop in the USD on a broad basis.

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.