Middle East Tensions Send Oil Prices Soaring to Three-Week High
Oil prices surged to their highest levels in over three weeks on Thursday as concerns about supply disruptions from the Middle East escalated. Tensions between Iran and key oil producers like the UAE have left room for further supply disruptions, according to UBS analyst Giovanni Staunovo.
The Brent crude futures contract for October delivery jumped by $2.19, or 2.39%, to reach $93.81 a barrel at 1257 GMT. Meanwhile, US West Texas Intermediate (WTI) crude futures rose $2.33 to $88.16 a barrel, with the more-active October WTI contract advancing $2.44, or 2.89%, to $86.83.
The current standoff has disrupted shipments through the Strait of Hormuz, which is crucial for global oil trade. The waterway saw unchanged shipping traffic on Wednesday from the previous day as efforts to end the conflict remained at an impasse.