Oil Prices Soar on Escalating Middle East Tensions

Oil prices have surged by 3% to near $108 per barrel due to escalating tensions in the Middle East. The region has seen a series of attacks on vessels, including an Iranian cargo ship struck in the Strait of Hormuz, which has left global energy markets on high alert.

The closure of a key Saudi oil pipeline has further exacerbated supply concerns, with experts predicting that oil prices could reach $120 per barrel if threats persist. However, Goldman Sachs expects oil prices to return to $80 per barrel should exports stabilize.

Major banks such as JPMorgan and Citi have also weighed in on the issue, estimating that every additional month of disruption could add around $7 to $8 a barrel to Brent prices.