Oil Prices Soar Amid Renewed US-Iran Tensions
Oil prices surged on Tuesday as tensions between the US and Iran escalated, with Brent crude futures rising $1.05 or 1.2% to $91.54 a barrel, while US West Texas Intermediate crude was up $1.27 or 1.5% to $87.03.
The increase in oil prices comes after President Donald Trump threatened further strikes against Iran on Monday, following the first direct exchange of attacks between the two countries in a month.
Tim Waterer, chief market analyst at KCM, said that 'these bring the potential for Iranian retaliation back into the equation...That in turn raises the prospect of damage to energy infrastructure around the Gulf and adds fresh uncertainty for shipping through the Strait of Hormuz.'
The number of visible commodity vessels transiting the Strait of Hormuz held at five per day, below the 10-day average of around 14, according to shipping data from Kpler.