Oil Prices Surge Amid Tanker Attacks and Stalled Peace Talks
Oil prices surged on Friday due to tanker attacks and stalled peace talks between the US and Iran. Brent futures settled at $88.52 a barrel, up 1.45 or 1.67%, while US West Texas Intermediate crude futures finished at $82.40, up 1.15 or 1.42%. The price increase was attributed to 'new attacks on tankers and lack of progress on a cease-fire agreement' by Andrew Lipow, president of Lipow Oil Associates.
'A day of reckoning' may come if traffic in the Strait of Hormuz remains constrained, through which 20% of global supply can pass, according to Lipow. Crude oil prices might be $80 a barrel, but diesel prices are $180 a barrel and gasoline is $130 a barrel, hitting consumers hard.
The US said it could maintain a naval blockade of Iran indefinitely and increase economic pressure on Tehran in response to stalled ceasefire talks. Treasury Secretary Scott Bessent announced measures that would 'apply like never seen in the history of economic isolation of a country.'