Tensions Soar: Oil Prices Jump as Middle East Conflict Escalates
Oil prices surged on Tuesday as escalating tensions in the Middle East raised concerns about potential disruptions to crude supplies. Iran's threats of retaliation against US attacks have sparked fears that key energy infrastructure, including US oil and gas interests, could be vulnerable.
The warning came after tit-for-tat strikes over the weekend, with no indication of a diplomatic breakthrough. Crude oil prices extended their gains as Brent futures rose 34 cents to $97.34 a barrel, while US West Texas Intermediate crude gained $1.15 to $92.63 a barrel.
Experts predict significant price hikes if the Strait of Hormuz sees blockages. JPMorgan estimates that every additional month of disruption could add around $7 to $8 a barrel to Brent prices. If disruptions persist for three months, the bank expects average monthly Brent prices to reach around $114 a barrel.