Hedge funds boosted their bullish bets on Brent oil to the highest level since April, according to Bloomberg data. The shift comes as unrest in Iran—OPEC’s fourth-largest producer—has reignited geopolitical risk in global energy markets. Traders are pricing in potential supply disruptions from the Middle East.

This move reflects a classic risk-on reaction in commodities. Iran's production, while not currently halted, faces uncertainty during internal turmoil. Historically, even minor threats to Middle Eastern supply can send crude prices spiking. The market's sensitivity to such events has been heightened by recent global inventory draws and steady demand.

OPEC producers will likely monitor these developments closely. If tensions escalate, the cartel may reconsider its output policy. For now, the bullish sentiment suggests traders expect crude prices to remain elevated. Watch for official statements from Tehran and any impact on shipping lanes in the Strait of Hormuz.