Oil Prices Soar on Fresh Fears of US-Iran Supply Disruptions
Oil prices surged by around 2% to reach a one-week high on Wednesday due to renewed supply fears stemming from the ongoing conflict between the US and Iran.
The Brent futures rose $1.55, or 1.7%, to $92.04 a barrel at 10:33 a.m. EDT (1433 GMT), while U.S. West Texas Intermediate (WTI) crude increased by $1.84, or 2.2%, to $87.60.
The tensions between the two countries escalated after Iran stated it would retaliate if the US honored its commitments under a June interim deal on halting their conflict.
Analysts pointed out that fresh hostilities between the US and Iran raised concerns about prolonged disruptions to energy flows through the Strait of Hormuz, with only five visible commodity vessels transiting the waterway on Monday, below the 10-day average of around 14 per day.