Oil Prices Soar to Nearly $100 as US-Iran Tensions Escalate

Oil prices have surged to nearly $100 a barrel as tensions escalate between the US and Iran in the Strait of Hormuz, a critical waterway for global oil supplies. On Saturday, the US Central Command reported that US forces struck three Iranian oil tankers.

The incident occurred near Kharg Island, which is close to Iran's key oil export hub. The attack has heightened fears of a prolonged disruption to Middle East oil supplies.

Crude oil prices continued their upward trend on Monday, with Brent crude futures rising 52 cents (0.54%) to $96.80 a barrel and US West Texas Intermediate crude gaining 66 cents (0.72%) to $92.14 a barrel.

Analysts have warned that the disruption could continue for months, with JPMorgan estimating that every additional month of disruption could add $7 to $8 to Brent prices. Goldman Sachs has also warned that Brent could climb to $120 a barrel if shipping disruptions persist in the Strait of Hormuz and the Red Sea.