Oil Prices Soar on Escalating Iran-US Tensions
Crude oil prices surged on Monday as tensions between Iran and the United States continued to escalate, with both countries ruling out extending their June agreement. The Strait of Hormuz has become a major concern for the oil market, with only three boats crossing the waterway on Sunday compared to 130 before the war.
WTI crude oil gained over 3% to close at $84.96 per barrel, while Brent crude oil rose by more than 2.5% to finish at $92.81. The slowdown in shipping through the Strait of Hormuz is causing supply delays and higher shipping costs.
China's potential buying of crude oil could add further upward pressure on prices. Beijing has recently cut its imports by 4-5 million barrels per day, which helped prevent a steeper price increase. However, Chinese refiners may be tempted to purchase more at high prices.