US-Iran Escalation Sends Oil Prices Soaring
Renewed military strikes between the United States and Iran have pushed oil prices higher. North Sea Brent crude rose by almost 3 percent, trading near $90.70 per barrel, while US light crude West Texas Intermediate (WTI) gained nearly 2.8 percent to around $85.70 per barrel.
The recent escalation began with US forces striking two Iranian missile launch facilities on Larak Island in the northern part of the Strait of Hormuz. Iran's Revolutionary Guards responded by attacking US bases in Jordan and the United Arab Emirates, according to Reuters.
The conflict has crippled shipping through the Strait of Hormuz, which carries around a fifth of global oil supplies. DBS analyst Suvro Sarkar now expects a limited military confrontation between the two nations rather than a prolonged escalation, but notes that every fresh escalation affects the timetable for reopening the Strait.