Hormuz Constriction Sends Brent Crude Soaring Towards $100
Oil prices rose on Monday as renewed US-Iran tensions pushed supply risks back to the center of the market. The Brent crude price traded around $97 a barrel in Asian hours, while West Texas Intermediate held above $92.
The move followed US strikes on three Iranian oil tankers over the weekend after Iran launched ballistic missiles towards two US Navy warships. Tehran then said it would establish a new restricted zone outside the Strait of Hormuz, adding another layer of uncertainty around one of the world's most important energy corridors.
ANZ Research analysts said that the latest attacks have further reduced the likelihood of Middle East oil flows returning to normal quickly. They expect a prolonged US-Iran confrontation rather than an imminent resolution.