Due to the mounting tension in the Middle East, those risk-laden waters have spread from the Red Sea to the Gulf of Aden, and the vital Strait of Hormuz could be caught up in it too.¹⁾

The risk premium in the oil market continues to erode as geopolitical tension in the Middle East eases. However, this is a factor that could return to the market, so is not something that should be fully discounted.²⁾