Strait of Hormuz Developments May Reverse Oil Price Surge
Oil prices have been rising due to ongoing tensions in the Strait of Hormuz and US-Iran negotiations. However, recent developments may be about to change this trend.
Last week, October Brent crude futures rose by 6.7% to $94.5/barrel, with a significant increase of 13.2% in two weeks and 3.3% in the month. However, since Monday's trading began on Asian markets, prices have fallen by 1.5% to $93/barrel.
US Treasury Secretary Scott Bessant announced that 'economic D-Day is beginning, the largest financial offensive ever directed against an adversary.' All of Iran's partners who help it trade will be subject to sanctions.
The US continues to block oil exports from Iran, with no shipments leaving Iranian ports for over a month. This has driven Iran's economy towards collapse.