US-Iran Conflict Sends Crude Oil Prices Soaring
Crude oil prices have surged to a fresh six-week high as fears of an extended US-Iran conflict intensify. The October WTI crude oil (CLV26) is up 0.48% at $73.65, while the October RBOB gasoline (RBV26) is up 0.40% at $2.04 a gallon.
The uptick in prices comes as hostilities between the US and Iran escalate, with both sides trading blows over the past few days. The US carried out a second round of strikes against Iranian targets on Monday, targeting radar systems and mine-laying capabilities along the country's southern coast. In response, Iran launched drone and missile attacks on US bases across the Middle East.
Despite these developments, crude oil prices have been tempered by signs that larger crude supplies are leaving the Strait of Hormuz, easing supply concerns. However, the International Energy Agency (IEA) has warned that global oil inventories will fall in Q3 at twice the previously estimated rate due to ongoing disruptions from the US-Iran conflict.