Iran-US Tensions Send Oil Prices Soaring
Oil prices surged on Friday, September 4, as tensions between the US and Iran intensified. The conflict has been ongoing since February, but recent attacks have escalated hostilities to a level not seen since July.
Brent crude futures rose by 48 cents, or 0.5%, to $96 a barrel, while US West Texas Intermediate crude futures increased by 55 cents, or 0.58%, to $92. Brent is up over 7% for the week, putting it on track for its strongest weekly gain since July.
US Vice President JD Vance stated that Washington would not engage in talks with Tehran unless Iran ceased attacking commercial shipping in the Strait of Hormuz. Israeli Defence Minister Israel Katz warned that Israel would 'cripple' Iranian military and civilian infrastructure, including energy facilities.
Analysts predict that every additional month of disruption could push Brent prices up by $7 to $8 a barrel. Goldman Sachs estimates that Brent could rise to $120 a barrel if shipping disruptions continue.