Middle East Tensions Send Oil Prices Soaring

Crude oil prices surged on Thursday by over 4 percent as tensions in the Middle East escalated. The price of Brent crude settled at $102.31 per barrel, while West Texas Intermediate (WTI) settled at $92.87 per barrel.

The increase in oil prices was triggered by a decision from US President Donald Trump to deploy more ships and troops to the region, which many interpreted as a sign that he plans to resume bombing Iran after the upcoming midterm elections.

Scott Modell, CEO of Rapidan Energy and a former CIA officer, believes that the president will indeed escalate the situation. He stated, 'The president I think is going to escalate after the midterms; we keep hearing that the Iranians are going to escalate into the midterms.'

In addition to the US move, China's decision to suspend exports of oil products from Hong Kong and Macau until further notice also contributed to the price hike. Giovanni Staunovo, an analyst at UBS, noted that this measure suggests concerns about domestic product availability.