Oil Prices Surge as US-Iran Tensions Escalate Near Strait of Hormuz
The ongoing conflict between the US and Iran has pushed oil prices near their highest level in five weeks. Brent futures held steady at $94.80 a barrel, while West Texas Intermediate (WTI) traded near $90.
US President Donald Trump's threat of further attacks on Iran, which responded with strikes against countries hosting American forces, has heightened tensions in the region.
Norbert Ruecker, head of economics at Julius Baer Group, said that the conflict is 'stuck' and will continue to fuel oil prices. He noted that about 30% of crude prices have increased since the war began in February.
US Energy Secretary Chris Wright confirmed that 8 million barrels per day are being exported through the Strait of Hormuz, with an additional 4-5 million barrels bypassing the waterway via pipelines.