Oil Prices Soar Amid Escalating Middle East Conflict
Crude oil prices continued their upward trend on Tuesday, surging by over 8% as tensions in the Middle East escalate. The US-Israeli conflict with Iran has widened since Saturday's initial attacks, leading to disruptions in fuel shipments and increased fears of further supply disruption.
The Brent crude futures rose $6.05, or 7.8%, to $83.79 a barrel, touching its highest level since July 2024 at $85.12. The US West Texas Intermediate crude gained $5.31, or 7.5%, to $76.54 after reaching its highest point since June at $77.53.
Tankers and container ships are avoiding the Strait of Hormuz due to insurance cancellations, causing global oil and gas shipping rates to soar. Iranian media reported that a senior Revolutionary Guards official stated the strait is closed, warning that any ship attempting to pass will be fired upon.