Commodities
Traders Rush Back to Oil Options to Hedge Middle East Political Risk
- Brent call options volumes hit highest level since early June
- Crude futures set to rise most since April on political risks
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Oil traders flocked to the options market as they hedged against escalating geopolitical risk from renewed conflict in the Middle East.
Brent call option volumes Tuesday were the highest since early June, as was implied volatility, a gauge of how much traders are willing to pay up for protection against price swings.