Oil Prices Soar on Escalating US-Iran Conflict
Oil prices rose sharply on Monday as the conflict between the US and Iran escalated. The Brent crude futures price increased by over 3% to $93.80 a barrel, while US crude futures rose 3.5% to $90.39 a barrel. This comes after Iran and the US traded strikes, with Israel also moving further into Lebanon in its battle with Tehran-backed Hezbollah.
The fighting in the Middle East has dimmed hopes for an extension of the ceasefire between the US and Iran, which was announced in early April. The US proposed a 'gradual de-escalation' plan on Sunday, but concerns are rising about mines in the Strait of Hormuz, a key oil shipping lane.
Goldman Sachs warned that weak oil demand in China and Europe poses a major downside risk to its fourth-quarter Brent crude forecast of $90 a barrel. Saudi Arabia is likely to cut its official selling prices for crude oil to Asia in July for a second month, according to a Reuters survey.