US-Iran Conflict Sends Global Oil Prices Soaring
Renewed fighting between the United States and Iran has pushed global oil prices sharply higher. Brent crude surged 4.6 percent to settle at $94.65 per barrel, while US West Texas Intermediate rose 5.2 percent to $90.22, both reaching five-week highs.
The increase in oil prices followed renewed military exchanges between the two countries, with US air strikes targeting Iran's Islamic Revolutionary Guard Corps. President Donald Trump threatened further action, which markets are pricing in as a possibility that additional retaliation could damage Gulf energy infrastructure or restrict regional exports.
One of the main concerns is the Strait of Hormuz, through which one-fifth of global oil supplies pass. The strait has been closed intermittently since February after US and Israeli attacks, with mediation efforts involving Qatar and Oman so far failing to secure a reopening.