Oil Traders Hedge Iran Risk as Brent Crude Hits Seven-Month High

Oil traders are aggressively hedging against geopolitical risks, driving Brent crude futures to a seven-month high above $72 a barrel on February 21, 2026. The rally reflects fears of potential US military action against Iran under President Donald Trump, reversing earlier expectations of a market surplus. Brent has risen approximately 18% since late 2025, with analysts projecting a potential $10 risk premium. Trading activity in options reached record levels last month, while volatility spiked to highs not seen since the previous US bombing of Iran. Supply constraints in Kazakhstan and the US, combined with sanctions on Venezuelan and Iranian crude, have tightened the market. Consequently, supertanker rates soared to over $150,000 per day as traders brace for possible disruptions to the Strait of Hormuz, a critical transit chokepoint.