Oil Prices Surge as US-Iran Tensions Escalate
Oil prices surged more than 3% on Friday after US President Donald Trump and Iranian Foreign Minister Abbas Araqchi escalated tensions in the Strait of Hormuz.
The Brent crude futures price rose $3.24, or 3.06%, to $108.96 a barrel by 10:49 a.m. CDT (1549 GMT), while US West Texas Intermediate futures gained $4.13, or 4.08%, at $105.03.
The increase in oil prices comes as the world's largest oil producers, including Saudi Arabia and Russia, are already struggling to meet demand due to a lack of spare capacity. The Strait of Hormuz is a critical shipping lane for global oil supplies.
Tensions between the US and Iran have been rising since the attack on an Iranian oil tanker in August 2020. Trump said he was running out of patience with Iran, while Araqchi stated that Iran has 'no trust' in the US and will only negotiate if Washington is serious.