Oil Prices Surge as US-Iran Tensions Escalate in Strait of Hormuz
Oil prices rose on Monday as tensions between the US and Iran escalated over attacks on vessels in the Strait of Hormuz. The Brent crude futures price climbed to $96.80 a barrel, up 52 cents or 0.54%, while West Texas Intermediate crude reached $92.14 a barrel, increasing by 66 cents or 0.72%. These gains follow a significant increase last week, with Brent rising 7.8% and WTI gaining nearly 10%.
The US Central Command announced that US forces had struck three Iranian oil tankers on Saturday, including one off the coast of Kharg Island near Iran's key oil export hub. In response, the navy of Iran's Islamic Revolutionary Guard Corps targeted three oil tankers traveling through unauthorized routes in the Strait of Hormuz as well as three additional US vessels in other areas.
Maritime intelligence firm Marisks described the Saturday attacks as a 'major escalation' in the maritime conflict. It noted that commercial tankers are now being deliberately used as instruments of reciprocal economic pressure, weakening the distinction between military confrontation and commercial shipping.