Iran-US Tensions Spark Oil Price Surge Amid Strait of Hormuz Disputes
Crude oil prices have surged to over $100 per barrel as tensions between Iran and the US continue to escalate. The Brent crude futures rose by 2.2% on Wednesday, while West Texas Intermediate (WTI) increased by 1.5% to $94.5 per barrel.
The increase in oil prices comes after Iran's Islamic Revolutionary Guard Corps (IRGC) said its naval forces targeted two US vessels and eight oil tankers in the Persian Gulf. The IRGC claimed that the strikes were carried out in response to US aggression, including an attack on five Iranian oil tankers in June.
The Strait of Hormuz has become a contentious issue between the two countries, with Iran accusing the US of failing to implement commitments under a memorandum of understanding signed in June. The US has imposed economic sanctions on Iran, which have led to disputes over navigation through the Strait of Hormuz.