**Global Energy Markets: Brent Breaches $70 on US-Iran Escalation** **Executive Summary** Oil markets witnessed a sharp rally late this week, with Brent Crude reclaiming the **$70 per barrel** psychological threshold for the first time in months. The surge is driven primarily by renewed geopolitical risk premiums following aggressive rhetoric from the US administration regarding Iran. **Key Market Data (As of Jan 30, 2026)** * **Brent Crude:** **$70.65** (+3.3% intraday) * **WTI Crude:** **$65.46** (+3.6%) * **Natural Gas:** **$3.88** (+3.9%) **The Catalyst: Geopolitical Tensions** Prices spiked after US President Donald Trump issued a strict ultimatum to Tehran: agree to a new nuclear deal or face military strikes. * **Naval Buildup:** Reports indicate a significant concentration of US naval forces in the Middle East, including carrier strike groups. * **Strait of Hormuz:** Anxiety has deepened following reports that Iran plans live-fire drills in this critical shipping lane, through which **20%** of the world's oil passes. * **Market Reaction:** Traders are rapidly pricing in a "war premium," estimated by analysts to add **$3–$4** per barrel to current prices. **Broader Context** * **Reversal of Trend:** The rally contradicts recent bearish sentiment driven by projected oversupply and rising US inventories. * **Supply Risks:** Beyond Iran, markets are monitoring disruptions in Kazakhstan and uncertainty surrounding Venezuelan exports, further tightening the supply outlook. * **Technical Outlook:** With Brent clearing the **$70** resistance level, technical analysts suggest the next major resistance zone lies near **$80**, provided geopolitical pressure remains high. **Market Sentiment** Bearish fundamentals (inventory builds) are currently being overridden by the immediate threat of supply disruption. Volatility is expected to remain elevated as markets await Tehran's official response and monitor US naval maneuvers. **Next Step for You:**