Oil Prices Rise Amid Escalating Tensions Between US and Iran
Oil prices rose on Monday as tensions between the US and Iran escalated with strikes on vessels in the Strait of Hormuz. Brent crude futures increased by 52 cents, or 0.54%, to $96.80 a barrel, while US West Texas Intermediate crude was at $92.14 a barrel, up 66 cents, or 0.72%. The price hike follows last week's 7.8% gain in Brent and nearly 10% increase in WTI after the US and Iran resumed attacks on each other's ships.
The latest attacks, which included strikes on three Iranian oil tankers and three additional US vessels, marked a 'major escalation in the maritime conflict', according to maritime intelligence firm Marisks. Commercial tankers are now being used as instruments of reciprocal economic pressure, weakening the distinction between military confrontation and commercial shipping.
An average of 10 commodity ships transited the Strait of Hormuz per day over the past 10 days, the lowest since May, data from analytics firm Kpler showed. A restricted zone will be announced outside the Strait of Hormuz in coming days, said Mohsen Rezaei, secretary of Iran's Supreme National Security Council.