US-Iran Escalation Pushes Oil Prices Near $100/Barrel
Oil prices surged on Monday as tensions between the US and Iran escalated, pushing Brent crude close to $100 per barrel. The increase was triggered by a series of attacks targeting Iranian oil tankers near the Kharg Island export hub, which followed attempts by Iran to target a US naval vessel. In response, Iran fired missiles towards Jordan and warned that vessels near Kuwaiti and Bahraini ports could be targeted.
The situation is further complicated by renewed Houthi attacks on Saudi energy infrastructure, forcing several facilities to halt operations and increasing regional supply risks. Although some crude continues to transit the Hormuz Strait, shipping risks remain acute due to military action targeting tankers and energy infrastructure.
Gold prices also edged higher as a weaker dollar provided support to the precious metal. The dollar index declined around 0.4% this week, partly reflecting a stronger yen, making gold cheaper for buyers using other currencies.