Oil prices advanced and U.S. Treasury yields climbed on Friday after the temporary ceasefire between the United States and Iran expired, reigniting geopolitical risk premiums in global markets.
Brent crude futures rose 1.2% to trade near $88 per barrel, while West Texas Intermediate (WTI) crude gained 1.1% to approach $85 per barrel. The increases followed the expiration of the six-week truce, which had temporarily eased tensions in the Middle East and supported a period of relative stability in energy markets.
The expiration of the ceasefire also contributed to a rise in U.S. Treasury yields, with the benchmark 10-year note climbing to 4.45% from 4.40% late Thursday. The move reflected a shift in investor sentiment, as traders priced in renewed uncertainty over the potential for further disruptions to oil supply from the region.
Analysts noted that the immediate impact on oil markets was contained, as global inventories remained adequate and alternative supply sources, including U.S. shale production, were available to offset any potential shortfalls. However, the expiration of the truce introduced a new layer of risk for energy traders, who are closely monitoring developments in the region for signs of escalation.
The geopolitical backdrop has been a key driver of oil prices in recent months, with tensions in the Middle East often leading to volatility in crude markets. The temporary truce had provided a brief respite, but its expiration underscores the fragility of the situation and the potential for further disruptions to global oil supply chains.
