Oil Prices Soar to Six-Week Highs Amid Escalating US-Iran Tensions

Oil prices surged to six-week highs on Monday as tensions between Iran and the US escalated. Brent crude futures rose $0.85, or 0.9%, to $97.13 a barrel, while U.S. West Texas Intermediate crude was up 1.3% at $92.63 a barrel.

The price increase came after Iranian Parliament Speaker Mohammad Baqer Qalibaf vowed to strike energy infrastructure across the Middle East in response to US attacks on its assets.

The conflict between the two nations has severely reduced oil supply from the region, forcing countries to burn through stockpiles to avoid deficits. In the US, gasoline and distillate fuel inventories are significantly below year-ago and five-year seasonal averages.