Hedge funds have ramped up bullish bets on crude at the fastest pace in three months, with escalating geopolitical tensions in the Middle East and Eastern Europe driving a renewed risk premium into oil markets, according to a report by Bloomberg citing data from the Commodity Futures Trading Commission.

CFTC data shows money managers lifted net-long positions in WTI crude by 26,247 contracts to 38,904 in the week to 16 September, the sharpest increase since June. The move was fuelled largely by a retreat in bearish wagers, with ICE data showing Brent shorts falling to a six-week low.

The shift comes as Israeli strikes on Hamas leaders in Doha heightened concerns over Middle East supply, while ongoing Ukrainian drone attacks on Russian energy assets continue to weigh on Moscow’s export outlook.

The positioning marks a sharp reversal from the prior week, when speculative sentiment toward US crude hit record bearish levels.