Hedge funds have raised their bullish positions on Brent crude to the highest level since April 2024, betting that escalating tensions in the Middle East could soon disrupt oil supplies. The latest positioning data shows money managers growing increasingly concerned about potential US military action that could impact crude flows from the region.

This surge in bullish bets comes as investors weigh the risks of supply disruptions in a market already facing geopolitical uncertainty. The Middle East remains a critical source of global oil supply, and any military escalation could quickly tighten the market. Traders are positioning for potential price spikes if tensions boil over into actual supply disruptions.

The shift in hedge fund positioning signals growing conviction that oil prices could climb higher in the near term. With Brent crude already volatile this year due to OPEC+ policies and global demand concerns, the added layer of Middle East risk is pushing investors to hedge their bets on the upside.