Oil Prices Soar to Two-Month High Amid Escalating Middle East Tensions
Crude oil prices have surged to their highest level since June 8, reaching $96.16 per barrel of Brent crude as tensions in the Middle East escalate. The increase marks a 37% rise from the low point in June.
The crisis in the region has intensified with the US and Iran warning of further strikes in the near future. On Tuesday, Trump warned that any American military member killed would result in more Iranians being targeted. He also threatened to hit Iranian bridges and power plants if a ship is struck while attempting to cross the Strait of Hormuz.
Goldman Sachs has warned that crude oil prices may reach $120 per barrel as supply and demand dynamics indicate further price increases. The country's low oil inventories have added to concerns, with China being another wildcard in the market due to its reduced oil purchases.