Oil Prices Surge on Tanker Attacks and Stalled Peace Talks
Oil prices surged over $1 per barrel on Friday due to tanker attacks and stalled peace talks between the US and Iran. Brent futures settled at $88.52 a barrel, up 1.67% or $1.45, while US West Texas Intermediate crude futures finished at $82.40, up 1.42% or $1.15.
The attacks on tankers in the Strait of Hormuz, through which 20% of global supply passes, have raised concerns about a 'day of reckoning' if traffic remains constrained. Andrew Lipow, president of Lipow Oil Associates, warned that crude oil prices might reach $80 per barrel, but diesel and gasoline prices could skyrocket to $180 and $130 per barrel respectively.
The US has threatened to maintain its naval blockade of Iran indefinitely and increase economic pressure on Tehran. Treasury Secretary Scott Bessent hinted at further measures against Iran, saying 'we are going to apply measures like have never been seen in the history of economic isolation of a country.'