Oil Prices Soar on Escalating US-Iran Tensions
Crude oil prices have risen as tensions between the US and Iran continue to disrupt Middle Eastern crude flows, according to Kedia Advisory. The advisory notes that the ongoing strikes between the two countries are keeping geopolitical risk premiums high, driving up prices. Specifically, Indian crude futures settled 2.12% higher at Rs 8,760.
The Strait of Hormuz is a critical shipping lane for oil exports from the region, and any disruptions to this flow can have significant impacts on global markets. In response to these tensions, OPEC+ kept its October oil output policy unchanged at its latest meeting, as it needs to finalize new quotas before determining its next production steps.
Goldman Sachs has warned that crude oil could rebound towards $120 per barrel if shipping attacks intensify, while its downside scenario places prices near $80 if regional exports normalize. The bank also highlighted greater supply risks in European natural gas and refined products than crude oil.