US-Iran Tensions Send Oil Prices Soaring to New Heights
Oil prices surged on September 7 as tensions between the US and Iran escalated following attacks on vessels in the Strait of Hormuz. The strikes, carried out by both countries, have heightened concerns about disruptions to Middle East oil supplies.
Brent crude futures rose 79 cents, or 0.82%, to $97.07 a barrel, while U.S. West Texas Intermediate crude traded at $92.28 a barrel, up 80 cents, or 0.87%. In early September, Brent crude prices rose 7.8% and WTI prices climbed nearly 10% after the US and Iran resumed attacks that reduced oil shipments through the Strait of Hormuz.
The US Central Command said American forces struck three Iranian oil tankers on September 5, including one near the coast of Kharg Island, close to a key Iranian oil export hub. The naval force of Iran's Islamic Revolutionary Guard Corps claimed it had attacked three oil tankers traveling on unauthorized routes through the Strait of Hormuz, as well as three American vessels in other areas.
US President Donald Trump said that every time Iran attacked a vessel in the Strait of Hormuz, the US would destroy a bridge or power plant in response. The ongoing conflict has led to oil price fluctuations throughout August and September.