Oil Prices Soar as US-Iran Conflict Reignites
The global oil price surged nearly 5% on Tuesday after the US launched strikes against Iran for the second time in two days, pushing West Texas Intermediate (WTI) above $90 a barrel and driving Brent crude close to $95.
Tensions around the Strait of Hormuz have deepened market fears of supply disruptions. The Strait is the world's most critical chokepoint for oil shipments.
Brent crude for November delivery settled up 4.60% at $94.65 a barrel on the London ICE Futures Exchange, while WTI for October delivery soared 5.20% to close at $90.22 a barrel on the New York Mercantile Exchange.
Ole Hansen, an analyst at Saxo Bank, said that long-term disruptions to energy supply flows through the Strait of Hormuz could materialize due to the resumption of armed conflict.