US-Iran Tensions Fuel Oil Price Surge Near Six-Week Highs

Oil prices have held near six-week highs as tensions between the US and Iran continue to escalate. Brent crude futures rose by 0.92% to $97.17 a barrel, while U.S. West Texas Intermediate crude hovered at $92.27 a barrel, up 0.86%. These gains come after last week's attacks on Iranian oil tankers.

The Strait of Hormuz has seen a significant reduction in tanker traffic, with an average of just 10 commodity ships transiting the area per day over the past 10 days. This is the lowest level since May, according to data from analytics firm Kpler.

A number of vessels have been targeted in recent attacks, including the Saudi-owned tanker that was attacked by Iran last week, resulting in the deaths of two seafarers. Oman has evacuated 16 crew members.

The US and Iran have engaged in a series of tit-for-tat strikes on vessels sailing in the Strait of Hormuz and other areas, keeping crude oil flows in the Middle East low. Goldman Sachs predicts that oil prices may rally to as much as $120 a barrel if attacks on shipping rise.