Oil Prices Soar as US-Iran Tensions Escalate After Airstrikes
Oil prices surged on Wednesday as tensions between the US and Iran escalated after a series of airstrikes overnight. The Brent crude futures price rose $1.03, or 1.1%, to $95.68 a barrel by 0605 GMT, while US West Texas Intermediate crude futures climbed 61 cents, or 0.7%, to $90.83.
The increase follows a weekend flare-up in hostilities between the two countries, which saw attacks on two tankers departing the Strait of Hormuz, causing further disruptions to oil supplies and forcing traders to seek alternative crude shipments.
According to ING analysts, 'developments in recent days brought risks to regional oil supplies back into focus... We've seen oil flow through the Strait of Hormuz despite the stalemate between the US and Iran, but rising tensions clearly put crossings at risk.'