Iran Tensions Send Crude Oil Prices Soaring to Six-Week High
Crude oil prices surged to a six-week high on Monday as tensions between the US and Iran escalated, threatening Middle East energy assets. The price of Brent crude futures rose by $1.03 or 1.1% to $97.31 a barrel, while US West Texas Intermediate (WTI) crude was up by 1.3% or $1.17 to $92.65 a barrel.
The conflict between the two countries has sharply reduced oil supply from the region, with Iran's Parliament Speaker warning that if the US attacks Iran's oil assets, they will retaliate by targeting American and Western energy interests in the Gulf.
US Energy Secretary Chris Wright claimed over the weekend that more than 9 million barrels per day of oil are being exported via water routes, but it remains unclear exactly how much oil is making it through the Strait of Hormuz at the moment.