Oil Prices Skyrocket Amid U.S.-Iran Agreement Collapse

Global oil prices have risen sharply, up 3.27% to $91.42 per barrel for October Brent crude futures on London's ICE exchange, and 3.32% to $85.14 per barrel for September futures of U.S. WTI crude.

The increase is largely attributed to the expiration of a 60-day memorandum of understanding between the United States and Iran on August 17, which failed to be extended due to disagreements over terms.

U.S. President Donald Trump stated that Washington did not intend to seek an extension of the agreement and demanded Iran's surrender, also threatening military action against Oman if it obstructed efforts to reach a deal.

The instability in the oil market poses risks for the economy, particularly for countries dependent on oil revenues like Kazakhstan, where government budget revenues, the National Fund, and the tenge exchange rate are affected by price fluctuations.