Oil Prices Soar as US-Iran Tensions Escalate

Oil prices continue to rise due to the escalating conflict between the U.S. and Iran in the Middle East, causing fears of potential disruptions to oil supplies from the region.

The price hike comes as Brent crude futures rose by $0.56 (0.6%) to $91.05 per barrel, while U.S. West Texas Intermediate (WTI) crude increased by $0.83 (1%) to $86.59 per barrel on Tuesday, September 1.

Tim Waterer, chief market analyst at KCM, warned that possible retaliatory strikes by Iran pose additional risks to the energy sector and could lead to damage to energy infrastructure in the Persian Gulf region and increase uncertainty regarding shipping through the Strait of Hormuz.

Data from analytics firm Kpler showed a significant drop in visible tankers passing through the Strait of Hormuz, with only five per day observed over the weekend. This route is crucial for global oil supplies, with nearly 20% of global oil supplies passing through it before the war began in late February.