
Brent futures closed 2.9% higher after U.S. Secretary of State Mike Pompeo said no more sanctions waivers would be issued for Iranian oil purchases. Iran threatened to shut the Strait of Hormuz in response.
A threat to the Strait of Hormuz, a key chokepoint for Gulf exports, adds a large risk premium to crude prices.
After 656 past bullish geopolitics events, Crude Oil (Brent) moved a median +1.9% over 5 sessions (63% higher; middle half -2.7% to +6.6%), and +0.7% over 20.
After 626 past bullish geopolitics events, Crude Oil (WTI) moved a median +2.1% over 5 sessions (62% higher; middle half -2.3% to +8.5%), and +1.6% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.