Oil Prices Soar Amid Escalating Tensions in Middle East

Oil prices continued to rise as tensions between Iran and the US escalated in the Middle East. A barrel of Brent crude was trading at $95.55, while U.S. West Texas Intermediate was at $91.53.

The conflict led to missile strikes between Iran and the US, with Israel's defense minister threatening a devastating strike against Iran's military and civilian infrastructure, including energy facilities.

Analysts from ANZ noted that the market has entered a delicate phase of adjustment, where maintaining balance will become more difficult as inventories decline. The team at ING pointed out that shipments through the Strait of Hormuz are supporting crude oil prices, but may lose momentum if there are no significant disruptions.

Additionally, analysts expect increased supplies from Iraq to continue this month, with vessels carrying Iraqi oil allowed to pass through the Strait of Hormuz due to Iran's agreement. U.S. Vice President J.D. Vance stated that Washington does not plan to hold peace talks with Iran until it stops attacking vessels in the Strait of Hormuz.

OilPrice believes that this position is adding pressure to oil prices, which could increase significantly over the week amid the conflict in the Middle East.