Middle East Tensions Spark Another Oil Price Surge

Oil prices continued to rise on September 7 due to escalating tensions in the Middle East. The US and Iran have been engaging in a series of attacks on vessels passing through the Strait of Hormuz, a key waterway that carries about one-fifth of the world's oil supply.

The latest round of strikes saw Brent crude futures rise by 79 cents or 0.82% to $97.07 per barrel, while US West Texas Intermediate crude traded at $92.28 per barrel, up 80 cents or 0.87%. These price increases follow a trend that began in early September, when Brent crude prices rose by 7.8% and WTI prices climbed nearly 10% after the resumption of attacks on oil shipments through the Strait of Hormuz.

US Central Command reported that American forces struck three Iranian oil tankers on September 5, including one near the coast of Kharg Island, close to a key Iranian oil export hub. Iran's naval force responded by attacking three oil tankers traveling on unauthorized routes through the Strait of Hormuz, as well as three US vessels in other areas.

The escalating tensions have raised concerns about extended disruptions to Middle East oil supplies. In July, US President Donald Trump stated that every time Iran attacked a vessel in the Strait of Hormuz, the United States would destroy a bridge or power plant in response.