Oil Prices Surge as Middle East Tensions Escalate

The price of crude oil has climbed over 2% to nearly $97 per barrel as tensions in the Middle East escalate following US strikes on Iran.

The escalation has reduced hopes for a quick easing of tensions, leading traders to look for alternative crude shipments.

JPMorgan estimates that each additional month of disruption could lift Brent prices by around $7 to $8 per barrel, while Goldman Sachs warns that Brent could rise to $120 if shipping disruptions through the Strait of Hormuz continue.

The US Central Command said the strikes came after recent attempted attacks by Iran's Islamic Revolutionary Guard Corps on commercial shipping in the Strait of Hormuz and on American service members deployed in the region.