US-Iran Tensions Send Oil Prices Soaring as Strait of Hormuz Concerns Grow
International oil prices continued their upward trend for a third consecutive day as tensions between the US and Iran escalated, sparking concerns about potential disruptions to crude shipments through the Strait of Hormuz.
The price of West Texas Intermediate (WTI) neared $91 a barrel on September 1, after surging 5.2% the previous day in its biggest one-day gain in five weeks, according to Bloomberg.
The recent spike in oil prices followed an escalation in fighting between Washington and Tehran, with President Donald Trump stating that recent US airstrikes were retaliation for Iran's attempted mining of the Strait of Hormuz and attacks on US military bases.
Iran swiftly retaliated by launching missiles towards Jordan targeting US military bases in the Middle East, further heightening tensions in the region.
The ongoing conflict has led to a significant increase in oil prices, with crude climbing over 30% since late February when the war began. Refined products such as diesel have been rising even faster, with concerns about supply disruptions persisting due to the overlap of conflicts in the Middle East and Ukraine.