Oil Prices Soar as US-Iran Conflict Escalates

Global oil prices have surged due to escalating military hostilities between the US and Iran. The conflict has raised concerns about crude flow disruption in the strategic Strait of Hormuz, which accounts for 30% of global seaborne crude.

The latest round of strikes saw Brent Crude jump over 3% to settle at $91.25 a barrel, while US West Texas Intermediate rose to $86.36. The increase in prices comes despite earlier expectations that oil prices would decline by the end of August due to increased supply through the strait.

Analyst Giovanni Staunovo from Union Bank of Switzerland noted that market attention is focused on potential further escalation, which could lead to greater disruption of crude shipments from Gulf exporters.