Middle East Tensions Drive Oil Prices Higher Amid US-Iran Escalation

Oil prices are set to rise further on Monday as tensions escalate in the Middle East.

The threat of attacks on energy facilities by Iran and the US has led to a surge in oil prices, with Brent futures for May settling up 3.26% at $112.19 a barrel on Friday, the highest since July 2022.

US President Donald Trump's threat to 'obliterate' Iran's power plants if Tehran does not reopen the Strait of Hormuz within 48 hours has been met with warnings from Iran that it will attack US-linked infrastructure in the Gulf.

Analysts say oil prices will spike on Monday if the ultimatum is not walked back, and that large-scale damage to desalination plants could make some cities in the Gulf uninhabitable within weeks.