Oil Prices Spike as Iran Tensions Escalate
Global oil prices rose for the second consecutive day on Friday, August 14, as tensions surrounding Iran continued to escalate. The Brent crude price increased by 9 cents, or 0.1%, to $87.16 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 4 cents to reach $81.29 a barrel.
The price surge comes after a brief dip on Thursday, which was triggered by fears of weakening global oil demand. Despite the volatility, both Brent and WTI remain on track for a weekly gain of nearly 4%.
The Strait of Hormuz, a crucial waterway through which nearly one-fifth of the world's oil supply passes, remains at the center of the tensions. Hossein Taeb, head of Iran's paramilitary Basij, stated that the Strait is under the 'management and control' of the Islamic Republic.
The comments from Taeb came after U.S. President Donald Trump claimed the U.S. held 'complete control' over the waterway. Any prolonged conflict or disruption to shipping through the Strait could severely impact global oil supplies.