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Iran's Oil Woes Rekindle Hedge Fund Optimism on Price Rally

  • Bullish positions on Brent climb by the most since 2016: ICE
  • Expectations of less supplies from nation stoked monthly gain
Crew men board the oil tanker 'Devon' in preparation for transporting crude oil to export markets in Bandar Abbas, Iran.
Crew men board the oil tanker 'Devon' in preparation for transporting crude oil to export markets in Bandar Abbas, Iran.Photographer: Ali Mohammadi/Bloomberg
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A looming shortage of Iranian oil supplies has hedge funds switching gears.

Money managers raised bets on rising Brent crude prices by the most since 2016 after three weeks of cutting wagers. The shift comes as Iran’s oil exports are shrinking, with key buyers in Asia taking fewer cargoes weeks before U.S.-imposed sanctions take full effect.