US-Iran Tensions Fuel Oil Price Surge to Six-Week Highs
Oil prices surged to fresh six-week highs on Thursday as renewed tensions between the US and Iran, along with Israeli threats against Tehran, raised concerns about disruptions to Middle East supplies.
Brent crude futures rose $1.76, or 1.8%, to $97.39 a barrel by 1025 GMT, while US West Texas Intermediate crude futures climbed $1.91, or 2.1%, to $92.92, erasing earlier losses.
The increase in oil prices was attributed to the latest strikes on Iran, which killed eight people and injured 108 others, as well as Israeli Defence Minister Israel Katz's warning that Israel would 'cripple' Iran's military and civilian infrastructure if Tehran launched attacks against it.
Saxo Bank analyst Ole Hansen stated that Katz's comments helped fuel the latest jump in oil prices, while UBS energy analyst Giovanni Staunovo noted that the oil market remains tight due to declining global oil inventories, leading to higher prices.