Brent Crude Surges to $96.9 as US-Iran Tensions Escalate
Brent crude prices surged on Monday as tensions between the US and Iran remained elevated in West Asia. The price of Brent Crude gained up to 1% to reach $96.9 a barrel, while West Texas Intermediate crossed the mark of $90 to trade near the $92 a barrel mark.
The increase was due to the ongoing conflict between the two countries, which saw both sides engage in tit-for-tat attacks over the weekend on each other's assets. The US launched strikes against three Iranian tankers, destroying one that sank in the Gulf of Oman, in retaliation for Iran's attack on US naval warships with ballistic missiles.
Iran has declared a new restricted zone outside the Strait of Hormuz, which will extend from the US navy blockade line and into parts of the Persian Gulf. The move is likely to impact oil exports from the region, as US Energy Secretary Chris Wright stated that there will be no let up in US naval presence in the Persian Gulf.