Oil prices have hit six-month highs following U.S. President Donald Trump's ultimatum to Iran, demanding a nuclear deal within 10 to 15 days. Concurrently, Iran has engaged in joint military exercises with Russia, heightening geopolitical tensions.
The surge in oil prices is likely to affect energy stocks positively while increasing costs for industries reliant on oil. This may lead to broader market volatility as investors react to geopolitical developments.
The U.S.-Iran standoff underscores the fragile state of Middle Eastern geopolitics, with potential ramifications for global trade and military alliances.