Oil Prices Surge Amid Escalating Tensions Between US and Iran

Oil prices are on track for a second consecutive weekly gain as tensions between the US and Iran escalate.

The Brent benchmark has risen more than 6.1% this week, while WTI has gained 5.3%, both touching their highest levels since July 24.

ANZ analyst Soni Kumari attributed the increase to the US's 'firm stance against Iran', including the blockade and threats of tougher sanctions on Iranian oil exports.

Crispus Nyaga, a research analyst at Empire FX, noted that while the immediate impact on supply may be limited due to existing constraints, an increase in shipping incidents and retaliation could exacerbate the situation further.