**Market Brief: Oil Prices Surge on Geopolitical Risk** **Price Action** Oil markets have rallied for a third consecutive day, driven by intensifying geopolitical friction and tightening supply fundamentals. * **Brent Crude:** Climbed to **~$69.00** per barrel. * **WTI Crude:** Advanced to **$63.79**, reaching levels not seen since late September. **Geopolitical Drivers** Traders are pricing in a heightened risk premium following reports of a potential U.S. military strike on Iran. * **Tensions Escalating:** Speculation is mounting over U.S. strategic maneuvers, with a naval group arriving in the region and renewed "maximum pressure" rhetoric from Washington. * **Supply Concerns:** Market participants fear disruptions to regional output, particularly from Iran, which produces approximately **3.2 million barrels per day**. **Inventory & Supply Data** Fundamentals are tighter than expected, compounding the geopolitical rally. * **U.S. Stockpiles:** The Energy Information Administration (EIA) reported a surprise **draw of 2.3 million barrels**, defying analyst expectations for a build. * **Production Constraints:** Lingering effects from recent winter storms in the U.S. have also temporarily curbed domestic output, further squeezing short-term availability. **Analyst Outlook** Market watchers warn that continued escalation could sustain upward momentum. * **Risk Premium:** Citi analysts estimate the current geopolitical risk has added **$3–$4** per barrel to prices. * **Price Targets:** If tensions worsen, Brent is projected to test the **$72** threshold in the near term.