<p>Jan 30 (Reuters) - BARCLAYS:</p>
<ul>
<li>RECENT PRICE ACTION AFFIRMS OUR VIEW THAT GEOPOLITICAL TENSIONS POSE ASYMMETRIC UPSIDE RISKS IN OIL MARKETS.</li>
<li>US-IRAN TENSIONS REMAIN ELEVATED. ONGOING SHUTTLE DIPLOMACY MIGHT HELP OVER THE NEAR TERM, BUT THE RHETORIC DOES NOT SUGGEST A CLEAR SUSTAINABLE PATH TO DIPLOMACY YET.</li>
<li>RECOMMENDS BUYING $70/B MINUS $75/B CALL SPREADS IN DECEMBER 2026 BRENT FUTURES ($1.60/B AT THE TIME OF WRITING)</li>
<li>SAYS MARKET REACTION HAS SO FAR AFFIRMED OUR VIEW THAT GEOPOLITICAL TENSIONS POSE ASYMMETRIC UPSIDE RISK TO OIL PRICES, WITH BRENT CLIMBING ABOVE $70/B, HIGHER THAN IT WAS BEFORE THE ONSET OF THE 12-DAY WAR LAST YEAR.</li>
<li>REITERATES BASE CASE THAT IT LIKELY FIZZLES OUT WITHOUT MAJOR IMPLICATIONS FOR SUPPLY AND PRESENT A FRAMEWORK FOR THINKING ABOUT THE POTENTIAL RISK OF A SUPPLY DISRUPTION</li>
</ul>

BARC

<p>Barclays recommends buying $70/B minus $75/B call spreads in December 2026 Brent futures, citing geopolitical tensions, particularly US-Iran relations, as posing asymmetric upside risks in oil markets. The bank notes that recent market reactions affirm this view, with Brent prices climbing above $70/B. While ongoing diplomacy may help in the near term, it does not indicate a clear path to sustainable resolution. Barclays maintains that the situation may fizzle out without significant supply implications, but highlights the potential risk of supply disruptions.</p>

Barclays Recommends Going Long Brent Call Spreads