Geopolitical Tensions Drive Oil Prices Higher; EU Asset Manager Calls for Oil and Gas Role

Oil prices reached their highest levels in more than a month on Monday, driven by escalating geopolitical tensions in the Middle East, according to Rigzone. The price surge follows a series of tit-for-tat attacks between the U.S. and Iran, including American military strikes conducted after the deaths of U.S. service personnel.

Analysts warn that continued instability could push prices even higher. "Continued attacks or tighter passage through the Strait of Hormuz could keep Brent supported above $90 and increase the risk of a move toward $100 per barrel," Naeem Aslam, CIO at Zaye Capital Markets, told Rigzone.

For Bakken shale operators in North Dakota, higher global crude prices typically improve cash flow and can support increased drilling activity. However, the volatility stemming from direct conflict also introduces significant uncertainty for planning and hedging strategies. The region's oil, which trades at a discount to international benchmarks, still stands to benefit from a rising price floor.

In a separate development with longer-term implications for energy markets, European asset manager Amundi stated that oil and gas remain crucial to the European Union's clean energy transition. In a report cited by Rigzone, Amundi argued that the EU should allow asset managers to include oil and gas exposures in a new fund category designed to support a lower-carbon economy.

This perspective underscores a continued, pragmatic role for fossil fuels during the global energy shift. For the Bakken formation, a major U.S. oil-producing region, such recognition supports the argument that its output will remain strategically relevant for years to come, both domestically and for potential allies seeking secure, non-Russian energy supplies. The interplay between immediate price spikes and evolving long-term investment themes will continue to shape the operating environment in the Williston Basin.