Oil markets brace for Iran risk as U.S. production cushions supply

Oil prices rose to a three-month high on fears of broader Middle East turmoil tied to U.S.-Iran tensions, but this time is different because the U.S. is the world’s largest oil producer and supply is less likely to face a sudden shortage. Any disruption could lift risk premiums, insurance costs, tanker rerouting, and freight, especially if Hormuz shipping is affected, making prices sensitive to headlines even if near-term output remains intact.