Brent Oil Surges as US-Iran Conflict Escalates

The price of Brent oil has gained $1.73 per barrel to trade at $87.63 per barrel, due in part to escalating tensions between the US and Iran.

The conflict has left the global oil market vulnerable to unpredictable price swings, with Washington imposing nearly 60 sanctions on Iran and threatening secondary sanctions on the country's international allies, including China.

However, a recent meeting between Iran and Oman's foreign ministers has brought some positive news, with the two countries discussing a temporary navigational corridor through the Strait of Hormuz, which is jointly controlled by Tehran and Muscat.

Analysts from ING Bank believe that this development could be a step towards restoring commercial navigation through the waterway, although they also note that it would likely require the US to lift its blockade on Iranian ports and ease sanctions on Iran before normalization occurs.