US-Iran Tensions Send Oil Prices Soaring Again

Oil prices surged on Monday as tensions between the US and Iran continued to escalate. Brent crude rose by 2.7% to settle near $91 a barrel, while WTI for September delivery increased by 2.6% to settle at $84.50 a barrel. The increase in oil prices comes despite indications that shipments through the Strait of Hormuz will not expand to pre-war levels in the near future.

The US Energy Secretary Chris Wright said in an interview with Fox News that the country is playing the long game with Iran, implying that there are no imminent plans for de-escalation. Wright's comments came just hours after Fox News reported that President Donald Trump threatened to bomb Oman if the country gets in the way of the American blockade of Iranian ships.

Talks between Iran and the US appear to be at a standstill, with a 60-day truce nearing its expiration on Monday. Meanwhile, Gulf producers are pressing ahead with shuttling large volumes of crude out of the Persian Gulf, helping to keep prices subdued.