US-Iran Tensions Send Oil Prices Soaring Amid Supply Concerns
Oil prices rose as tensions between the US and Iran continued to weigh on the market. Brent crude surpassed $107 per barrel, while West Texas Intermediate (WTI) reached around $94 per barrel.
The stalemate in negotiations between the two countries has left investors uncertain about the future of oil supplies through the Strait of Hormuz.
Saudi Arabia has partially restored its East-West pipeline, which was damaged by drone attacks earlier this month. The pipeline's capacity is still around 50% below pre-attack levels, but it has helped to alleviate some of the supply constraints in the region.
The tightening physical market and ongoing uncertainty over Hormuz are likely to support crude prices despite improving export capacity from Saudi Arabia.