Iran Oil Threat Sends Prices Soaring to Six-Week Highs
Oil prices have surged to six-week highs after Iran's vow to strike energy infrastructure across the Middle East in response to US attacks on its assets.
The latest escalation in the conflict has sharply reduced oil supply from the region, forcing nations to burn through stockpiles to avoid deficits. Brent crude futures rose 85 cents or 0.9 percent to USD97.13 a barrel by 12:38 p.m. EDT (1638 GMT), after hitting their highest point since July 24 at USD98.06.
US West Texas Intermediate crude was up 1.3 percent, or USD1.15, at USD92.63 a barrel, also the highest since July 24. The United States and Iran traded strikes on oil tankers and warships over the weekend, marking a major escalation of the war between the two countries.
Iran's Parliament Speaker Mohammad Baqer Qalibaf said 'Strike our assets and you get struck', in response to US Defence Secretary Pete Hegseth's warning that Tehran's oil fleet was 'defenceless'. Commercial tankers are now being deliberately used as instruments of reciprocal economic pressure, substantially weakening the previous distinction between military confrontation and commercial shipping.