Oil Prices Soar Over $1 per Barrel Amid Tanker Attacks and Stalled Iran Peace Talks

Oil prices surged over $1 per barrel on Friday due to tanker attacks and a lack of progress in peace talks between the US and Iran. Brent futures settled at $88.52, 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 hike follows new attacks on tankers and stalled ceasefire negotiations.

Andrew Lipow, president of Lipow Oil Associates, warned that a 'day of reckoning' may come if traffic in the Strait of Hormuz remains constrained. He noted that crude oil prices might be $80 per barrel, but diesel and gasoline prices are significantly higher at $180 and $130 per barrel, respectively.

Treasury Secretary Scott Bessent hinted that the US may increase economic pressure on Iran next week, citing measures 'like never seen before' in the history of economic isolation. Shipping traffic through the Strait of Hormuz has fallen below its monthly average due to claims of control by the US and Iran.