Oil Prices Soar as Iran Shifts to Offensive Military Posture
Oil prices surged on Tuesday as tensions between Iran and the US escalated. A senior Iranian official announced that Iran would shift to a 'fully offensive' military posture due to stalled negotiations for a permanent end to the war with the US.
The US has ruled out extending a temporary ceasefire agreement, and the situation remains volatile in West Asia. The Strait of Hormuz, a critical oil shipping route, remains closed, with only five vessels transiting through it on Saturday, compared to 31 in the previous weekend.
Brent crude futures rose by 27 cents, or 0.3%, to $91.14, while US West Texas Intermediate crude futures increased by 42 cents to $85.04 a barrel. Tim Waterer, chief market analyst at KCM, attributed the jump in oil prices to 'US-Iran relations look increasingly shaky'.