Middle East Tensions Send Oil Prices Soaring Again
Oil prices are rising due to renewed concerns about supply disruptions in the Middle East. The resumption of fighting between the U.S. and Iran has led to increased tensions, which may impact energy infrastructure and shipping through the Strait of Hormuz.
The price of Brent crude futures is up 66 cents, or 0.7%, to $91.15 a barrel at 0640 GMT. U.S. West Texas Intermediate crude is also up, by 70 cents, or 0.8%, to $86.46.
Analysts say that the risk of Iranian retaliation and potential damage to energy infrastructure is driving the price increase. The Strait of Hormuz, which carries about a fifth of global oil supplies, has seen reduced shipping activity in recent days.
The UK Maritime Trade Operations agency reported that a tanker was struck by three projectiles while sailing out of the strait on Tuesday, but no casualties or environmental impacts were reported.