Oil Prices Soar to Six-Week High Amid Escalating US-Iran Tensions
Oil prices surged to a six-week high on Monday as Iran's threats of retaliation against US attacks sent shockwaves through global markets. The uptick in crude oil prices came despite the US markets being closed for Labor Day, and Iranian Parliament Speaker Mohammad Baqer Qalibaf vowed to retaliate after US Defense Secretary Pete Hegseth warned that Tehran's oil fleet was 'defenseless'.
The weekend attacks on three Iranian oil tankers by US Central Command marked a significant escalation of the conflict. The strikes, which targeted the M/T Downy, M/T Stark 1, and M/T Kylo near Kharg Island, Jask, and in the Gulf of Oman respectively, sent a clear message: 'If you shoot at two of our ships, we will impose an even higher economic cost, taking out three of yours.'
As a result of these developments, crude oil prices rose sharply. West Texas Intermediate (WTI) futures hit $92.65 a barrel on the New York Mercantile Exchange, up 1.3% or $1.17 from Friday's close. Brent crude, the global benchmark, settled at $97.31 a barrel with a gain of 1.1% or $1.03.