US-Iran Escalation Sends Oil Prices Soaring to Near-Record Heights

The latest US-Iran escalation has sent oil prices soaring, threatening global supply and shipping. On September 5, US forces struck three Iranian crude carriers after Tehran targeted two US Navy warships patrolling regional waters. The Islamic Revolutionary Guard Corps (IRGC) launched ballistic missiles towards the American vessels, but they evaded the attacks with no harm to personnel.

According to CENTCOM, the US aircraft carrier and guided-missile destroyer were not hit, while the Iranian crude carriers M/T Downy and M/T Stark 1 were permanently disabled. The third tanker, M/T Kylo (also known as Noxen), was destroyed in the Gulf of Oman after its crew abandoned ship.

Adm. Brad Cooper, CENTCOM commander, warned Iran: 'Let the message to the IRGC be clear: If you shoot at two of our ships, we will impose an even higher economic cost, taking out three of yours.'

The strikes come as Brent crude prices are already elevated amid concerns over disruptions to Gulf supplies. With Brent crude settling at $96.28 a barrel on Friday, it's within striking distance of $100.