Brent Crude Surges to Four-Month High as West Asia Tensions Escalate
Oil prices have surged to their highest level in four months after an escalation of hostilities in West Asia sparked fears of supply disruptions. Brent Crude prices crossed $108 a barrel, while West Texas Intermediate (WTI) traded around $104 a barrel. The US and Iran have continued their battle, with both sides showing no intention to back down.
The conflict has led to attacks on fuel tankers, including those owned by Saudi Aramco, and has raised concerns about the stability of global oil supplies. China's increased purchases of oil over the past few weeks have also contributed to the price surge. US President Donald Trump said that the war will end after the mid-term elections in November, but analysts believe that the conflict could drag on for longer.
Goldman Sachs had warned earlier this week that oil prices could reach $120 a barrel if the fight continues to escalate. Brent Crude is currently up 80% for the year and is closing in on its war-time high of $126 a barrel.