US-Iran Tensions Send Brent Crude Prices Soaring Above $90

Brent crude prices surged in early trading on Tuesday, reaching their highest level in over three weeks and surpassing $90 a barrel. The ongoing US-Iran conflict continues to create uncertainty in energy markets, causing prices to rise as traders factor in the threat to supplies.

The situation remains volatile, with both sides adopting an increasingly belligerent tone and diminishing hopes of a negotiated settlement that would allow maritime traffic through the Strait of Hormuz to normalize. This has led to a sharp decline in oil-tanker traffic through this critical shipping route, which typically carries approximately one-fifth of global oil and LNG supplies.

The disruption is affecting fourth-quarter orders and adding further upward pressure on prices. With little prospect of a short-term peace agreement, there is scope for further price increases as the crisis threatens to continue.