Oil Prices Surge Amid Middle East Tensions

Global oil prices continued to rise on Monday (September 7), driven by escalating US-Iran tensions and disruptions to shipping through the Strait of Hormuz. The uncertainty over Middle Eastern supplies is keeping a geopolitical risk premium in oil prices, according to market analysts.

Brent crude, the global benchmark, rose 0.43 percent to $96.69 a barrel by around 8:30am, while US West Texas Intermediate (WTI) gained 0.60 percent to $92.03. The price gap between Brent and WTI could widen further if the conflict escalates or key energy infrastructure is damaged.

Oil prices posted one of their sharpest weekly gains in recent memory last week, with Brent jumping 7.6 percent to $96.28 a barrel and WTI surging nearly 10 percent to $91.48, their highest levels since July. The latest surge in oil prices is largely linked to uncertainty over tanker traffic through the Strait of Hormuz.