US-Iran Tensions Send Oil Prices Soaring to 6% Weekly Gain

Oil prices surged by 6% in the week ending August 23 as Brent crude approached $95 a barrel. The increase was driven by mounting tensions between the United States and Iran, which fueled concerns over tighter global supplies.

The US West Texas Intermediate (WTI) crude rose 23 cents to $87.06 a barrel, while Brent futures settled 61 cents higher at $94.39 a barrel. Both benchmarks had reached their highest levels since July 24 in the previous session, according to Reuters.

Trade sources said offers of Iranian crude to Chinese buyers declined during the week as a US blockade reduced shipments from Tehran. Prices for Iranian crude subsequently moved higher, with Washington signaling the possibility of additional sanctions.

The sharp weekly gains underline the sensitivity of oil markets to geopolitical developments in the Middle East. Any further restrictions on Iranian exports could tighten available supplies and provide additional support for benchmark prices.