Oil Prices Surge on Iran War Stalemate Concerns
Oil prices rose on Monday due to concerns about global supply disruptions caused by the stalemate in diplomatic efforts to resolve the Iran war. US President Donald Trump demanded Iran's surrender and threatened to bomb Oman if it got in the way, while a senior Iranian official vowed to escalate tensions if the US failed to implement an interim peace deal fully within weeks.
The price of Brent crude futures increased by 2.82% to $91.02 a barrel, while US West Texas Intermediate crude futures rose 2.75% to $84.67 a barrel. Analysts believe that oil prices will only move significantly higher if there is a halt in the current flow of crude out of the Strait of Hormuz at night and/or a closure of the Bab el-Mandeb Strait.
Despite this, U.S. Energy Secretary Chris Wright said he believes Trump has 'a lot of latitude to wait out Iran' while the economic sanctions and oil embargo take effect. Wright added that 'the world doesn't need Iranian oil.'