Oil Prices Skyrocket as US-Iran Conflict Escalates

Oil prices surged to their highest level in four weeks on Tuesday as tensions between the US and Iran escalated.

The Brent crude futures rose $2.74, or 3.29%, to $86.04 per barrel, while US West Texas Intermediate crude increased $2.21, or 2.83%, to $80.35 a barrel.

This marks the highest level for Brent since June 12 and WTI since June 16, despite the memorandum of understanding signed between the two nations on June 17.

ANZ analyst Soni Kumari stated that the market is pricing in concerns over disruptions to energy flows through the Strait of Hormuz, a critical artery for global trade carrying about a fifth of the world's daily oil and liquefied natural gas supplies.