Hedge funds have significantly increased their bullish positions on Brent crude, reaching the highest level since February 2020. According to ICE Futures Europe data for the week ending March 10, money managers boosted their net long positions by 65,438 contracts to a total of 351,032 contracts. This surge in bullish sentiment comes as the crude oil market faces unprecedented volatility. The ongoing Middle East conflict has severely disrupted traffic through the Strait of Hormuz, leading to a prolonged supply disruption. This has forced major crude oil producers to cut production and caused some refiners to default on contracts. In the U.S., the Commodity Futures Trading Commission reported that bullish bets on U.S. crude have climbed to an eight-month high. The turmoil has also driven volatility indicators in financial derivatives markets to levels not seen since the Russia-Ukraine conflict, prompting algorithmic traders to maximize long positions while options trading activity declines.