Oil Prices Soar on Tensions with Iran
Crude oil prices surged on Friday, reaching over USD 1 per barrel, as tensions between the US and Iran continued to escalate. The Brent futures settled at USD 88.52 a barrel, up USD 1.45, or 1.67 percent, while US West Texas Intermediate crude futures finished at USD 82.40, up USD 1.15, or 1.42 percent.
The increase in oil prices is attributed to the tanker attacks and lack of progress on a peace agreement between the Trump administration and Iran's leadership. Andrew Lipow, president of Lipow Oil Associates, warned that a 'day of reckoning' may come if traffic in the Strait of Hormuz remains constrained, through which 20 percent of global supply can pass.
Treasury Secretary Scott Bessent stated that the US will apply measures like never seen before to isolate Iran economically. The US and Iran have been making claims over control of the strait, leading to a decrease in shipping traffic through the channel.