Oil prices climb on Middle East tensions as dollar strengthens

Brent crude, the global oil price benchmark, climbed 0.7% to US$105.45 per barrel amid heightened geopolitical concerns stemming from attacks in the Middle East. The uptick reflects investor caution over potential disruptions to energy supplies from one of the world's most critical oil-producing regions.

The dollar simultaneously gained ground against major currencies, adding to pressure on commodities priced in US dollars. A stronger greenback typically makes oil and other dollar-denominated goods more expensive for buyers using other currencies, though this effect was offset by supply-side concerns driving prices higher.

Market analysts attribute the moves to a combination of geopolitical risk premiums and broader currency market dynamics. Traders are closely monitoring developments in the Middle East for any signs of escalation that could impact the region's substantial oil production capacity.

The price movements reflect ongoing volatility in energy markets, where geopolitical events and macroeconomic factors continue to exert significant influence on investor sentiment and trading patterns across Asia-Pacific and global financial centres.