Crude Oil Futures Soar to Five-Week Highs Amid US-Iran Conflict
Crude oil futures surged on the first of the month, hitting five-week highs due to concerns over supply disruptions in the Middle East. The re-escalation of military conflict between the United States and Iran has sparked fears that crude supplies could be disrupted, particularly through tanker route avoidance and soaring insurance premiums.
The North Sea Brent futures rose $4.16 (4.6%) from the previous day to settle at $94.65 per barrel, while U.S. WTI futures increased by $4.46 (5.2%) to close at $90.22 per barrel. This marks the highest level for Brent since July 24 and WTI since July 23.
The conflict between the two countries has entered its sixth month, with the United States resuming strikes against Iran after a one-month pause, followed by retaliatory attacks from Iran. Market participants are concerned that a prolonged conflict could lead to tighter physical supply and potentially drive Brent prices up to $100 per barrel if fighting intensifies further.