Hedge funds' bullish sentiment towards Brent crude oil climbed to its highest level in six years as the crude market entered one of its most volatile weeks on record. According to weekly futures and options data from the Intercontinental Exchange covering the period up to March 10, money managers increased their net long positions in the global benchmark crude by 65,438 contracts, bringing the total to 351,032 contracts. This marks the highest level seen since February 2020.

Simultaneously, data from the U.S. Commodity Futures Trading Commission indicated that bullish wagers on U.S. crude oil have risen to an eight-month high.

Tensions involving Iran have led to a near-total halt in shipping through the Strait of Hormuz, a critical global oil chokepoint, for nearly two weeks. This passage typically handles approximately one-fifth of the world's oil supply. The prolonged disruption has caught market participants off guard, as many had anticipated that any U.S. or Israeli military action would involve more precise strikes.