Oil futures rallied in parallel sessions on Tuesday, hitting a seven-week high as geopolitics returned to weighing on markets with renewed ship attacks in the Red Sea and Ukrainian drone strikes on Russia oil and energy infrastructure.

Prices rose after a Ukrainian drone attack caused a enormous fuel tank fire at an oil terminal in Russia’s southern port of Azov, and Yemen’s Houthi fighters were believed to have sunk a second ship in the Red Sea.

Additionally, Israeli Foreign Minister Israel Katz warned that a decision on all-out war with Hezbollah would come soon, even as American diplomacy tried to prevent a larger war.

“Everywhere you look the geopolitical risk factor is very high” said Phil Flynn of Price Futures Group, according to Reuters. “We haven’t seen a major impact on supply, but that could change very quickly.”

Nymex (CL1:COM) pre-month crude for July deliveries has ended +1.5% to USD 81.57/bbl, and the August Brent crude oil price (CO1:COM) closed +1.3% to USD 85.33/bbl, the highest level since April 30 for both benchmarks.

US natural gas rebounds after four straight sessions of losses as Nymex July natgas (NG1:COM) stabilizes for the first month +4.3% up to USD 2,909/MMBtu.

ETFs: (NYSEARCA: USE), (BNO), (UCO), (SCO), (USL), (DBO), (DRIP), (GUSH), (NRGU), (USOI), (UNG), (COOKING), (KOLD), (UNL), (FCG)

American shale drillers will do it raise oil production for the next 3-4 years before stopping around 2028, dashing OPEC+ hopes for a faster decline in U.S. production growth, according to a recent HSBC analysis.

Improvements in drilling and fracking techniques will fuel expansion and will more than offset recent constraints in the deployment of drilling rigs, the bank’s analysts wrote in a note titled “Undervalue U.S. shale at your own risk.”

The report shows that American shale deposits will raise production by ~400,000 tonnes next year. barrels per day, followed by slower growth.