Analyst: Geopolitical risk premium reverting supports the rebound, but further upside is limited

1. Phillip Nova Head of Market Insights Priyanka Sachdeva stated that as hopes for a lasting U.S.-Iran solution gradually fade, geopolitical risk premiums have returned to the crude oil market, driving oil prices to almost completely recover losses since early August.2. However, she also pointed out that unless there are clear signs of escalating hostile actions in the Strait of Hormuz, especially substantial damage to oil tankers or oil infrastructure, the room for further oil price increases may be relatively limited.