Iran-US Tensions Send Oil Prices Soaring Above $99
Oil prices surged on Wednesday as tensions between the US and Iran escalated, fueling concerns over further disruptions to Middle East energy supplies.
The US military destroyed five Iranian crude tankers in retaliation for attempted attacks on an American warship. The attack was seen as a significant escalation in the ongoing conflict, which has now entered its seventh month.
Brent crude, the international benchmark, rose 1.55% to $99.44 a barrel, while US benchmark West Texas Intermediate futures for October delivery jumped 1.75% to $94.66 a barrel.
Daan Struyven, co-head of global commodities research at Goldman Sachs, warned that oil prices could surge above $120 a barrel if exports fail to recover in the coming months. He noted that alternative upside price scenario is becoming more plausible due to intensifying shipping attacks.