(Bloomberg) -- A flurry of oil options contracts that would profit from higher prices in coming months changed hands, a sign that some traders are wagering on the continued risks of wider escalation to tensions in the Middle East.

About 30 million barrels worth of Brent crude oil call option spreads for May and June have traded in recent days, according to brokers and exchange data. A buyer of the strategy, which is a so-called $110/$130 call spread, would profit if prices reach or exceed $110. That would be a massive jump from the current level hovering around $77.

May options contracts expire in late March, while June contracts expire a month after that, meaning any price rally would have to happen before those dates for buyers to benefit.

While crude prices have had a relatively sluggish start to 2024, bouncing within the same range since early December, the options activity is a sign some traders are betting that’s about to change.

Attacks on Red Sea shipping have only had a limited impact on tanker flows so far but continue to menace a vital route for the global oil business.

In addition, Israel’s war with Hamas has ramped up regional tensions, and OPEC+ promises output cuts in an effort to tighten the crude market.

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