US-Iran Fighting Sends Oil Prices Soaring to Five-Week High
Oil prices surged more than $4 a barrel on Tuesday, reaching a five-week high, as traders feared supply disruptions from renewed US-Iran fighting. Brent futures rose $4.16 to settle at $94.65 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $4.46 to settle at $90.22.
The increase was driven by the US launching new air strikes on Iranian targets, quashing hopes of a wider renewal of hostilities following an exchange of direct attacks in July. Iran remained defiant, warning it would prevent oil being exported from the Gulf, despite US President Donald Trump's threat to hit Iran 'hard'.
Analysts estimated energy firms pulled 0.8 million barrels of crude from storage during the week ended August 28, marking the first decline in five weeks. This was in contrast to an increase of 2.4 million barrels in the same week last year and an average decrease of 5.1 million barrels over the past five years.