Oil Prices Soar on US-Iran Tensions and Shipping Attacks
Oil prices are near six-week highs due to ongoing tensions between the US and Iran. On Monday, Brent crude futures rose by 89 cents or 0.92% to $97.17 a barrel, while US West Texas Intermediate crude hovered around $92.27 a barrel.
The increase comes after last week's sharp rise in oil prices, with Brent up around 8% and WTI boosted nearly 10%. The recent escalation of attacks between the two nations has kept crude oil flows in the Middle East low.
A Saudi-owned tanker was attacked by Iran a week ago, resulting in the deaths of two seafarers. Oman evacuated 16 crew members on Monday. An average of 10 commodity ships transited the Strait of Hormuz per day over the past 10 days, the lowest since May.
Goldman Sachs predicts oil prices may rally to as much as $120 a barrel if attacks on shipping rise. The United Arab Emirates is building alternative routes for its energy exports and trade to ensure they are not affected by the ongoing conflict.