Oil Prices Soar on Escalating Iran-US Tensions

Oil prices surged to a six-week high on Monday as tensions between Iran and the US escalated over the weekend, with both countries trading strikes. Brent crude oil futures rose by 1.3% to $97.52 per barrel, reaching its highest point since July 23 at $97.93. West Texas Intermediate, the US oil benchmark, also climbed 1.3% to $92.68 and briefly surpassed $93 a barrel.

The escalation of tensions in the Middle East has raised concerns about maritime attacks on oil shipments. Goldman Sachs analysts have warned that crude oil prices could reach as high as $120 per barrel if these attacks continue. On the other hand, they predict that prices could retreat to $80 per barrel if tensions ease and regional export volumes stabilize.

Iran announced plans to establish a new restricted zone in the Gulf, which will begin where the US blockade of Iran starts and extend into areas of the Gulf. The country also intends to release maps of a new shipping corridor through the Strait of Hormuz.