Oil Prices Spike Amid US-Iran Tensions and Tanker Attacks

Oil prices continued to rise on Monday, nearing six-week highs as tensions between the US and Iran persisted. Brent crude futures increased by 89 cents or 0.92% to $97.17 a barrel, while U.S. West Texas Intermediate crude hovered near a recent high at $92.27 a barrel.

The gains came after a weekend of attacks on oil tankers in the Strait of Hormuz, with both sides accusing each other of aggression. The US Central Command said that US forces struck three Iranian oil tankers, including one off the coast of Kharg Island, an oil export hub.

Mohsen Rezaei, secretary of Iran's Supreme National Security Council, announced that a restricted zone would be established outside the Strait of Hormuz in the coming days. This move has sparked concerns about further disruptions to global oil supplies.

Goldman Sachs predicted that oil prices may rally to as much as $120 a barrel if attacks on shipping continue to rise. The United Arab Emirates is building alternative routes for its energy exports to ensure they are not affected by the ongoing conflict.