Oil Prices Soar Above $90 Amid Ongoing US-Iran Conflict
Crude oil prices surged to new highs on Monday as tensions between the US and Iran continued to escalate. The Brent crude price closed above $91 a barrel, while West Texas Intermediate traded above $85 a barrel.
The ongoing conflict has led to increased uncertainty in the market, with energy traders awaiting a new wave of sanctions that the US Treasury Department is set to announce this week. Meanwhile, Gulf producers are finding alternative routes to ship oil to customers, bypassing the Strait of Hormuz.
US President Donald Trump's administration officials have signaled that they are playing a 'long game' with Iran, with Energy Secretary Chris Wright stating that the US is not in a rush to get a deal. The Iranian government has also cautioned that any potential agreement would not lead to an immediate reopening of the Strait.
Today, traders will be keeping an eye on stockpiles data, which showed a surprise increase last week to its highest level in two months. Estimates for inventories are expected from the American Petroleum Institute later today, followed by official figures on Wednesday.