Besant: The end of geopolitical tensions may lead to an oil surplus and pressure on prices

Besant said, in a television interview broadcast on Friday, that the end of tensions will lead to the flow of additional quantities of crude into the markets, which likely creates a large surplus in supply that will put pressure on prices.

He added that a decline in energy prices would ease inflationary pressures and lead to a decline in US Treasury bond yields, which have risen recently due to fears of the repercussions of rising oil prices on borrowing costs.

Besant's forecasts come at a time when crude prices continue to rise due to risks surrounding energy supplies and navigation through the Strait of Hormuz, as Brent crude settled near $95.62 per barrel, after touching $97.60 during the week, while West Texas Intermediate crude traded near $91.22.

In financial markets, the yield on ten-year US Treasury bonds rose to a range between 4.79 and 4.82 percent, while spot gold fell 1.1 percent to $4,419.09 per ounce, affected by the rise in yields and the strength of the dollar.

Besant's expectations are linked to a decline in the geopolitical risk premium in the oil market, while its realization remains dependent on the course of the conflict and the return of supply and navigation flows to normal.