Iran-US Tensions Send Oil Prices Soaring Amid Disrupted Global Energy Flows
The latest exchange of military strikes between the US and Iran has sent oil prices surging to a five-week high, with Brent futures rising by $4.16 or 4.6% to close at $94.65 per barrel.
US West Texas Intermediate crude climbed $4.46 or 5.2% to $90.22 per barrel, both reaching their highest levels since July as markets priced in increased geopolitical risk and the possibility of further disruptions to one of the world's most important oil-shipping routes.
The price of natural gas in Europe also rose by approximately 6.20% to its highest level in three and a half years amid the escalation of hostilities between the US and Iran, with the TTF futures contract reaching €74.14 per megawatt-hour.
Analysts estimate that the US strike on Larak Island represents more of an attempt to break the deadlock than a change in strategy, as the US appears to be punishing specific behavior rather than expanding its war aims.