Oil Prices Soar on Rising Tensions Between US and Iran

Crude oil prices have surged nearly 9% this week to mark their strongest weekly performance since mid-July. Despite some minor fluctuations on Friday, crude oil is trading around $90 a barrel.

The uptick in oil prices can be attributed to ongoing tensions between the US and Iran. The resumption of US-Iran strikes has reignited concerns over supply disruptions.

Israeli warnings that it would 'cripple' Iran's military and civilian infrastructure have also contributed to market sentiment, weighing on crude supplies. Meanwhile, US Vice President JD Vance stated that Washington does not plan to hold talks with Tehran unless Iran stops attacking commercial shipping in the Strait of Hormuz.

However, there are signs that crude supplies are still reaching the market. Iraq's oil exports rose in August and are expected to increase further in September. OPEC+ is likely to keep its oil output policy unchanged for October at its meeting on Sunday.