OIL Market Update
23 May 2026 • 01:26 GMT
Oil prices remain near seven-day lows at about $104.40 per barrel, but are still up nearly 6% compared to their three-month average of around $98.72. The recent rise comes amid ongoing disruptions in Middle East supply routes, especially through the Strait of Hormuz, which has pushed Brent crude above $101 for the first time in over three years. These supply issues are driven by increased tensions and conflict in the region, raising worries of further disruptions that could send prices even higher, possibly approaching $120 a barrel if unrest continues.
The rise in oil prices boosts currencies of oil-exporting nations such as Canada, Russia, and Norway, which have strengthened against the US dollar. Meanwhile, countries that import a lot of energy face higher costs and potential currency weakening.
Geopolitical risks are a key factor to watch, as persistent conflict could keep prices elevated. Energy markets remain volatile, and any escalation could further influence the currencies linked to oil exports. For retail FX traders, the recent oil moves may support strength in related currencies, but equally could introduce increased volatility, especially if global tensions persist.