Iran Uses Oil as Geopolitical Weapon, Targeting US Fuel Prices: SEB Analyst

Bjarne Schieldrop, Chief Commodities Analyst at SEB, has warned that Iran is increasingly utilizing oil as a strategic geopolitical weapon in its international confrontations. According to the analyst, the current conflict extends to U.S. gasoline pumps, which are now considered a critical part of the geopolitical battlefield. This strategy aims to exert direct pressure on the U.S. economy by influencing domestic energy prices and impacting consumer sentiment. By leveraging its significant position in the global oil market, Tehran seeks to gain tactical advantages in its ongoing disputes with Western powers. Market experts suggest that such heightened tensions typically inject a substantial risk premium into global crude oil benchmarks. Consequently, instruments like WTI and Brent are expected to face upward pressure as concerns over supply volatility and energy security persist.