Oil Prices Surge Amid Ongoing US-Iran Tensions and Strait of Hormuz Threats
Oil prices rose on Monday as tensions between the US and Iran remained elevated. The Strait of Hormuz, a critical shipping route, continues to be a concern due to ongoing attacks by Iranian-backed forces.
The price of Brent crude futures gained $1.32, or 1.27%, to $105.64 a barrel, while US West Texas Intermediate crude rose 70 cents, or 0.76%, to $93.11 a barrel, according to Reuters.
US President Donald Trump rejected an Iranian proposal aimed at resolving the conflict and reopening the Strait of Hormuz last week. However, he later indicated that US negotiators could engage with their Iranian counterparts again this week.
The continued uncertainty over US-Iran diplomacy has kept geopolitical risks elevated, with ANZ analysts warning that regional energy supply routes remain vulnerable to attacks. The Houthis in Yemen have continued to launch attacks on Saudi Arabia, including intercepting two ballistic missiles and two drones last Saturday.