Oil Prices Surge Amid US-Iran Conflict Disrupting Strait of Hormuz Supplies
Oil prices surged to near six-week highs as tensions between the US and Iran escalated, disrupting supply routes in the Strait of Hormuz. Brent crude futures rose to around $97 a barrel, up nearly 9% over five days and 19% over the past month.
The latest increase followed a fresh exchange of attacks in and around the Strait of Hormuz, with the US striking three Iranian oil tankers on Saturday. Iran's Islamic Revolutionary Guard Corps said it had targeted three tankers and three US-linked vessels elsewhere.
Rachel Ziemba, adjunct senior fellow at the Center for a New American Security, noted that the rise in prices reflected the continuing exchange of fire as well as persistent shortages in global supplies.
Concerns deepened on Monday after Saudi Aramco's facilities in Jizan were reportedly struck for the second time in a month. The attack may further delay the restoration of production at the site, adding to the uncertainty surrounding regional energy supplies.