US-Iran Conflict Drives Oil Prices Higher Amid Reduced Strait of Hormuz Traffic
Oil prices continued their upward trend on Monday as tensions between the US and Iran escalated. The Strait of Hormuz, a crucial oil shipping route, has seen a significant decrease in tanker traffic due to the escalating conflict.
The Brent crude futures price rose by 52 cents (0.54%) to $96.80 per barrel, while US West Texas Intermediate crude increased by 66 cents (0.72%) to $92.14 per barrel. This comes after a week of gains for both oil prices, with Brent up 7.8% and WTI rising nearly 10%. The spike in prices is largely attributed to the ongoing conflict between the two nations.
The US Central Command confirmed that three Iranian oil tankers were struck on Saturday by US forces. Iran's Islamic Revolutionary Guard Corps also reported targeting three oil tankers traveling through unauthorized routes in the Strait of Hormuz and additional US vessels elsewhere.