Oil Prices Surge to Three-Week High Amid Escalating US-Iran Tensions
Oil prices surged to their highest levels in over three weeks on Tuesday, as tensions between the US and Iran continued to escalate. The Brent crude futures contract rose 15 cents, or 0.17%, to close at $91.02 per barrel, while US West Texas Intermediate (WTI) gained 44 cents, or 0.52%, to $84.94.
The gains were limited, however, as market participants appeared to become less sensitive to daily geopolitical news. Darrell Fletcher, managing director of commodities at Bannockburn Capital Markets, noted that the market has 'toned down its reactions' due to the constant flow of headlines without substantial results.
Despite Tehran's insistence that the Strait of Hormuz remains closed, some oil continues to pass through the waterway. Saudi Aramco has resumed oil loadings from inside the Strait and is offering cargoes through ship-to-ship transfers off Fujairah in the United Arab Emirates.