Iran-US Tensions Send Oil Prices Soaring
Oil prices surged 5% on Monday as tensions between Iran and the US intensified. The Strait of Hormuz, which carries a fifth of the world's oil, remains closed due to the ongoing conflict.
The US demands that Iran must pay compensation for 'all of the people that they have killed and gravely wounded', while Iran insists that the US lift sanctions on Teheran before reopening the strait. Iranian Foreign Minister Abbas Araqchi stated that talks will not begin until Washington is in compliance with an interim deal signed in June.
Brent crude futures settled at $87.72 a barrel, up 4.99%, while US West Texas Intermediate crude futures closed at $82.13, up 5.05%. The percentage gains were the highest since July 29 on both contracts.
The situation is further complicated by Ukrainian strikes hitting Russian refineries and tankers in the Black Sea, and a Houthi attack on Saudi Aramco's Jazan refinery.