Oil Prices Rise Amid Escalating US-Iran Tensions
Oil prices have risen again due to rising tensions between the US and Iran. Brent crude futures for November delivery rose 0.62% to $101.84 per barrel, while West Texas Intermediate (WTI) for October rose 1.01% to $96.06 per barrel. The increase in oil prices is attributed to concerns over supply disruptions that could worsen if attacks on shipping lanes continue.
The US military destroyed five Iranian crude oil tankers in response to an attempted attack on an American warship, escalating tensions between the two countries. Dan Struyven, Co-Head of Global Commodities Research at Goldman Sachs, warned that the US-Iran conflict increases the risk of oil prices breaching $120 per barrel if attacks on shipping intensify.
Some analysts also predict that the conflict could prolong the rise in oil prices due to tightened supplies. Andrei Constantin, Commercial Director and Trade Advisor of TFP Software FZCO, noted that transit volumes may fall again, further tightening supplies and prolonging the rise in oil prices.