Oil Prices Soar on Tanker Attacks and US-Iran Stalemate

Crude oil futures have surged over $1 per barrel due to tanker attacks and the ongoing stalemate in US-Iran peace negotiations. According to Reuters, Brent futures settled at $88.52 a barrel, up 1.67% or $1.45 from the previous day. Similarly, US West Texas Intermediate crude futures finished at $82.40, up 1.42% or $1.15.

Lipow Oil Associates president Andrew Lipow warned of a 'day of reckoning' if traffic in the Strait of Hormuz remains constrained. He attributed the recent oil price rally to new attacks on tankers and the lack of progress towards a cease-fire agreement between the US and Iran.

The Brent and WTI futures are poised for weekly gains of 6.0% and 5.4%, respectively. Lipow emphasized that while crude oil prices may be around $80 per barrel, diesel and gasoline prices have skyrocketed to $180 and $130 per barrel, severely impacting consumers.