Oil Prices Soar on Renewed US-Iran Tensions
Oil prices surged over $4 per barrel on Tuesday, reaching a five-week high as tensions between the US and Iran escalated. The Brent futures price rose by 4.6% to settle at $94.65, while West Texas Intermediate (WTI) crude increased by 5.2% to settle at $90.22.
The rise in oil prices was attributed to concerns about supply disruptions in the Middle East due to renewed fighting between the US and Iran. The US launched air strikes on Iranian targets, quashing hopes that an exchange of fire last weekend might not presage a wider renewal of hostilities.
Analysts estimated that energy firms pulled 0.8 million barrels of crude from storage during the week ended August 28, which would be the first decline in five weeks and compares with an increase of 2.4 million barrels in the same week last year.