Oil Prices Soar Above $90 Amid Escalating US-Iran Tensions
The global oil market witnessed a sharp surge in prices after the US intensified its attacks on Iran. Brent crude futures rose to $94.65 per barrel, while West Texas Intermediate (WTI) climbed to $90.22 per barrel.
The increase was fueled by concerns over disruption to shipping through the Strait of Hormuz, a critical route for global oil flows. The US Central Command announced airstrikes against targets linked to Iran's Islamic Revolutionary Guard Corps (IRGC), sparking fears of retaliation from Tehran.
Ole Hansen, an analyst at Saxo Bank, noted that sustained disruption to energy shipments could push Brent prices above $100 per barrel within days.
The oil shock spilled over into broader financial markets, with the Dow Jones Industrial Average falling 0.79% and global stock indices experiencing losses. Higher oil prices also fueled expectations of a rate hike by the Federal Reserve, pushing up US Treasury yields to their highest level in months.