Oil Prices Soar Amid US-Iran Escalation in Strait of Hormuz
Global oil prices surged by more than 2% on August 31 following the United States' strike on Iran's Larak Island in the Strait of Hormuz and Tehran's response. The escalation marks a new phase of conflict, with no clear end in sight.
As reported by Reuters, Brent crude futures rose $2.51, or 2.85%, to $90.61 per barrel, while U.S. WTI crude increased by $2.13, or 2.55%, to $85.53 per barrel.
Tony Sycamore, a market analyst at IG, warned that further intensification of the conflict could pave the way for another upward move in prices. If WTI breaks above $85.80-$85.90 per barrel, it could reach last week's high of $87.69, followed by July's high of $93.50 per barrel.
The Strait of Hormuz, a vital shipping route, has seen a significant drop in cargo vessels due to the threat of attacks. According to shipping monitoring data, an average of only five notable cargo vessels passed through the strait over the weekend.