Oil Prices Near Six-Week Highs Amid Escalating US-Iran Tensions
Oil prices continued to rise on Monday, reaching near six-week highs as tensions between the US and Iran escalate. The latest price action saw WTI crude trading at approximately $91.98 per barrel on TradingView, up $0.50 or 0.5% from Friday's settlement.
The dominant catalyst for this price move is the increasing risk of supply disruptions in the Strait of Hormuz. US forces struck three Iranian oil tankers over the weekend, and Iran retaliated against six vessels, resulting in a significant decline in commodity traffic through the strait.
Kpler data shows that an average of only 10 commodity ships per day transited Hormuz during the past 10 days, the lowest level since May. This has raised concerns about potential price consequences, with Goldman Sachs predicting that crude could reach $120 per barrel if attacks on Middle Eastern shipping intensify.
Despite OPEC+'s decision to leave its October output policy unchanged, the market remains cautious due to the ongoing geopolitical risks. Brent's next psychological threshold is $100, and another significant disruption to tanker traffic could put that level under immediate pressure.