Commodities
Oil Prices Soar Amid Escalating Conflict Between Iran and Middle East Countries
The price of oil has surged to $86.40 per barrel for West Texas Intermediate (WTI) and $93.01 per barrel for Brent, both rising by around 2-4% on the day.
This increase is largely driven by the ongoing conflict between Iran and several Middle Eastern countries, including the UAE, which has halted all trade and financial transactions with Tehran in response to accusations of ballistic missile attacks.
The United States has also imposed economic sanctions on Iran, threatening to disrupt its ability to monetize its crude exports. The Brent-WTI spread has widened to around $6.61, indicating that the market is pricing in a waterborne supply problem rather than a domestic one.