Oil Prices Soar on Escalating US-Iran Tensions

Oil prices surged on Friday as tensions between the US and Iran continued to escalate. The Brent crude price rose to its highest level since early May, reaching $109.97 a barrel. This comes after reports that Iran and Oman are meeting with Gulf states to reopen shipping through the Strait of Hormuz.

The meeting is an Omani initiative and could be the first between top Gulf diplomats and Iranian officials since the onset of the US-Israeli offensive against Iran in late February. The gathering is scheduled for Monday in the coastal city of Salalah, according to the Financial Times.

The US had largely opposed any agreement on commercial shipping through Hormuz, but it seems that talks are still ongoing. This has led to increased concerns over supply disruptions in the Middle East, with Yemen's Iran-backed Houthi group seizing control of the port city of Mocha and gaining leverage over the Bab el-Mandeb Strait.

The Houthis have also attacked ships in Bab el-Mandeb and launched strikes on Saudi energy infrastructure. Media reports claimed that the Houthis hit Saudi's East-West oil pipeline, causing six major fires to break out around the facility.