Oil Prices Surge Near Six-Week Highs Amid US-Iran Tensions

Oil prices continued their upward trend on Monday, reaching near six-week highs as tensions between the US and Iran persisted. Brent crude futures rose $1.19 to $97.47 a barrel, while U.S. West Texas Intermediate (WTI) crude hovered near a recent six-week high at $92.26 a barrel.

The price gains come after last week's attacks by both sides on oil tankers in the Strait of Hormuz. On Saturday, the US Central Command said it struck three Iranian oil tankers, including one off the coast of Kharg Island, an oil export hub. Iran's Islamic Revolutionary Guard Corps retaliated by targeting three oil tankers that were traveling through unauthorized routes.

Average tanker traffic in the Strait has been low since May, with only 10 commodity ships transiting per day over the past 10 days, according to analytics firm Kpler. This has led some market observers to warn of a potential supply shock if tanker traffic continues to slow down.