US-Iran Tensions Send Crude Oil Prices Soaring to New Highs

Crude oil prices continue to climb as tensions between the US and Iran persist. The conflict has disrupted energy flows from the Middle East, causing Brent crude futures to rise by 27 cents or 0.3% to $91.14 a barrel.

The previous day's highest level since July 30 was also reached, with US West Texas Intermediate (WTI) crude futures gaining 42 cents to $85.04 a barrel, following an earlier rise of more than 1% to $85.37, its strongest level since July 31.

The developments have heightened concerns over potential disruptions to energy supplies, as the conflict nears its sixth month and the US signals no immediate end to it. Energy Secretary Chris Wright told Fox News that the US was taking a long-term approach in dealing with Iran, while envoy Jared Kushner said Trump was prepared to be patient in pursuing an agreement.

Saudi Arabia is now offering cargoes sourced from outside the chokepoint of the Strait of Hormuz, suggesting that the kingdom could be following the UAE's strategy of finding alternative routes to export its oil. This has helped Persian Gulf producers to move oil through the Strait and supply international markets more effectively.