Iran Tensions Boost Oil Prices 7%, 10% Weekly Gains Ahead
Escalating tensions between the US and Iran have pushed oil prices higher this week, with Brent crude poised for a 7% gain and WTI futures up by 10%. The uptick in prices comes as military hostilities between the two nations intensify, with Iranian missile and drone strikes targeting US and allied positions across the Gulf region.
The Strait of Hormuz remains a major concern for traders, who fear disruptions to energy flows through the waterway could tighten global oil markets. Iran has expanded restrictions on international shipping through the strait, raising worries about prolonged disruptions.
Despite the tensions, oil prices have been supported by signs of tighter inventories in the US, with commercial crude stocks falling to 424.5 million barrels last week. The US Strategic Petroleum Reserve stood at around 286.6 million barrels.