Oil Prices Soar as US-Iran Tensions Escalate
Oil prices rose on Friday and are set for their steepest weekly gain since mid-July due to intensifying US-Iran tensions. Brent crude futures increased by 0.2% to $95.67 a barrel, while WTI was up 0.3% at $91.56.
The rise in oil prices is attributed to the ongoing conflict between the US and Iran, which has resulted in the killing of dozens, including Iranian civilians. The US attacks this week marked the fiercest clashes between the two countries since July. Israeli Defence Minister Israel Katz warned that Israel would 'cripple' Iran's military and civilian infrastructure, including energy facilities.
US Vice President JD Vance stated that Washington does not plan to hold talks with Iran unless Tehran stops attacking commercial shipping in the Strait of Hormuz. However, Russian President Vladimir Putin expressed hope for a deal to end the war in Ukraine, stating that both the US and China are prepared to support a peace settlement.
Iran expanded its list of vessels deemed non-compliant, subjecting them to fines, confiscation or detention if they attempt to transit the strait. Iraqi ships remain among the few cleared to pass through Hormuz, with Iraq increasing its oil exports to 2.34 million barrels per day in August from 1.35 million bpd in July.