Oil Prices Surge as US-Iran Tensions Escalate
Oil prices surged on Monday to their highest level in six weeks as tensions between the US and Iran escalated, raising concerns about disruptions to global crude supplies.
The latest conflict has seen the US military striking three Iranian oil tankers over the weekend after Iran launched ballistic missiles at two US Navy warships. The attack damaged a Saudi Aramco facility in Jizan, which processes 400,000 barrels of crude per day, and has added another layer of uncertainty to already volatile oil markets.
The price of Brent crude futures rose 1.5% to $97.73 a barrel, reaching its highest level since July 23. West Texas Intermediate crude gained 1.8% to $93.10, also hitting a six-week high. The rally has now seen Brent prices rise over 33% since the conflict began in February.
The latest escalation comes as OPEC Plus decided to keep production unchanged for October, despite previous increases being largely symbolic due to disruptions to Gulf exports and complicated global oil trade. The move has contributed to concerns that continued hostilities could tighten supplies further by drawing down strategic reserves.