Oil Prices Soar on Tanker Attacks and Stalled Peace Talks
Crude oil prices surged over $1 per barrel on Friday as tanker attacks and stalled peace talks between the US and Iran continued to fuel market uncertainty.
Brent futures settled at $88.52 a barrel, up $1.45 or 1.67%, while US West Texas Intermediate crude futures finished at $82.40, up $1.15 or 1.42%.
The price jump comes as the Strait of Hormuz remains congested due to escalating tensions between Iran and the US. Andrew Lipow, president of Lipow Oil Associates, warned that a 'day of reckoning' may come if traffic in the strait continues to be constrained, which could further disrupt global oil supply.
On Thursday, the US Treasury Secretary said the country would maintain its naval blockade of Iran indefinitely and increase economic pressure on Tehran in response to stalled ceasefire talks. The comments sparked concern that the ongoing standoff between the two nations could continue to drive up oil prices.