Brent Crude Surges to $91.14 Amid Escalating Iran-US Tensions

Oil prices surged on August 18 as tensions between Iran and the US escalated. The Iranian military is shifting its doctrine from defensive to offensive, intensifying fears over energy supply disruptions.

Iran's armed forces are preparing to adopt 'transformative approaches' and take necessary action at the appropriate time, according to Brigadier General Yadollah Javani, IRGC Political Deputy. He stated that Iran's actions so far have been defensive but could assume an offensive character in the future.

The US has ruled out extending a temporary ceasefire agreement, while diplomatic headway and the restoration of commercial tanker transits through the critical Strait of Hormuz have effectively stalled. Brent crude futures gained 27 cents to $91.14 per barrel, building on gains from Monday that hit peak levels last seen on July 30.

U.S. West Texas Intermediate (WTI) crude futures rose 42 cents to $85.04 per barrel, after climbing over 1 per cent earlier in the session to hit $85.37 - its highest level since July 31.