Oil Prices Rise as US-Iran Conflict Escalates Middle East Supply Disruptions
Oil prices have risen as tensions between the US and Iran escalate in the Middle East. The conflict has reignited concerns about supply disruptions from the region, which is a key crude-producing area.
Brent crude futures increased by $0.66, or 0.7%, to $91.15 a barrel at 0640 GMT on September 1. US West Texas Intermediate crude also rose by $0.70, or 0.8%, to $86.46.
US President Donald Trump has threatened further strikes against Iran following the first exchange of direct attacks between the countries in a month on Sunday.
The resumption of fighting has raised the prospect of damage to energy infrastructure around the Gulf and added fresh uncertainty for shipping through the Strait of Hormuz. This is being reflected in the firmer tone in crude prices, according to Tim Waterer, chief market analyst at KCM.