US-Iran Tensions Send Oil Prices Soaring Amid Strait of Hormuz Strikes
Oil prices continued their upward trend on Monday as tensions between the US and Iran escalated over maritime strikes in the Strait of Hormuz.
The Brent crude futures rose by 79 cents, or 0.82%, to $97.07 a barrel, while US West Texas Intermediate crude reached $92.28 a barrel, up 80 cents, or 0.87%.
The strikes in the Strait of Hormuz have heightened concerns about a prolonged supply disruption from the Middle East, with over 10 commodity ships transiting the area per day over the past 10 days at an average, according to analytics firm Kpler.
Priyanka Sachdeva, head of market insights at Phillip Nova, warned that if tanker traffic begins to slow materially, the market could price in a much larger supply shock. 'There are already signs that this is happening,' she said.