Iran Shifts to 'Fully Offensive' Military Posture, Oil Prices Surge
Oil prices surged on Tuesday as tensions between the US and Iran escalated, casting doubt over any potential peace deal. A senior Iranian official announced that Iran will shift to a 'fully offensive' military posture after efforts to negotiate a permanent end to the war with the US stalled.
The move raises concerns about energy supply risks as the conflict threatens to extend beyond its current scope. Brent crude futures climbed 27 cents, or 0.3 per cent, to $91.14 by 0003 GMT, while US West Texas Intermediate crude futures were up 42 cents to $85.04 a barrel.
US-Iran relations have been deteriorating since the US and Israel launched attacks on Iran on February 28. The conflict has led to concerns over supply risks, particularly in the Strait of Hormuz, which is a crucial chokepoint for global oil trade.