Oil Prices Surge as Strait of Hormuz Attacks Escalate

Oil prices surged to a six-week high on Monday as attacks on commercial vessels by the US and Iran threatened to disrupt crude flows through the Strait of Hormuz.

Brent crude futures rose 89 cents, or 0.92%, to $97.17 a barrel, while West Texas Intermediate crude gained 79 cents to $92.27.

The recent gains extend a sharp rally triggered by the escalation in attacks, with Brent rising about 8% last week and WTI gaining nearly 10% as the US and Iran resumed strikes.

Goldman Sachs warned that oil could climb as high as $120 a barrel if attacks on shipping intensify, while Priyanka Sachdeva, head of market insights at Phillip Nova, said that if tanker traffic slows materially, the market could price in a much larger supply shock.