Oil Prices Reach Two-Week High Amid Escalating Tensions in Middle East
Oil prices reached a two-week high after an attack on a nuclear power plant in the United Arab Emirates, raising concerns of escalating tensions in the Middle East. Brent crude futures touched $112 per barrel for the first time since May 5, while U.S. West Texas Intermediate (WTI) crude rose to its highest since April 30 at $108.70.
The attack on the Barakah nuclear power plant and drone interceptions by Saudi Arabia have heightened fears of a military escalation in the region. PVM analyst Tamas Varga attributed the oil price surge to 'belligerent U.S. and Iranian rhetoric' and continued attacks on oil producers and commercial vessels.
Commercial oil inventories are rapidly depleting, with only a few weeks of supplies left, according to International Energy Agency (IEA) head Fatih Birol.