US-Iran Tensions Send Oil Prices Soaring to One-Month Highs

Oil prices held near one-month highs on Wednesday after rising to $97.04 for Brent and $92.29 for WTI, but slipped slightly due to US-Iran strikes stoking supply fears.

According to Ole Hansen, Saxo Bank's head of commodity strategy, the market is facing a 'binary risk', either an announcement of a deal being reached or escalation would further undermine a peace agreement.

The latest exchange in hostilities between the US and Iran has raised concerns about supply disruptions through the Strait of Hormuz, with Iran threatening to restrict traffic through this critical waterway.

Despite the tensions, analysts say that oil flow through the Strait of Hormuz continues, but rising tensions put crossings at risk. The US Secretary of Energy Chris Wright said on Tuesday that 17 million barrels of oil transited the Strait of Hormuz on Monday, marking the highest level since the Iran war reduced flows.