Oil Prices Surge Amid US-Iran Conflict and Strait of Hormuz Attacks
Oil prices have been holding near six-week highs after the US and Iran engaged in tit-for-tat strikes on vessels sailing through the Strait of Hormuz, a key oil shipping route. As tensions escalate, Brent crude has risen by 89 cents to $97.17 a barrel, while US West Texas Intermediate (WTI) crude has gained 79 cents to hover near its recent six-week high at $92.27 a barrel.
The attacks represent a major escalation, with commercial tankers now being deliberately used as instruments of reciprocal economic pressure. This could potentially weaken the distinction between military confrontation and commercial shipping, according to maritime intelligence firm Marisks.
Goldman Sachs has predicted that oil prices may rally to as much as $120 a barrel if attacks on shipping rise. Meanwhile, the United Arab Emirates is building alternative routes for its energy exports to ensure they are not 'held hostage' by the ongoing conflict.