Oil Prices Soar on Middle East Tensions
Oil prices have surged to a four-month high as tensions in the Middle East continue to rise. The Brent crude barrel, a reference for the European market, reached $107.3 per unit on Tuesday, a gain of over 1.6%.
The increase is attributed to the temporary closure of the East-West pipeline in Saudi Arabia and ongoing obstacles faced by tankers crossing the Strait of Hormuz. The pipeline has become a strategic alternative route for Saudi oil exports, diverting around five million barrels daily that would normally leave from terminals in the Persian Gulf.
Meanwhile, West Texas Intermediate (WTI) rose over 1.7% to $103.1 per barrel. The US and Iran's ongoing conflict, as well as drone attacks on the East-West pipeline, have contributed to the price surge.