Commodities
US-Iran Tensions Send Oil Prices Soaring to Six-Week High
Oil prices surged to a six-week high on Monday, reaching $98.06 per barrel after the US and Iran engaged in mutual attacks on oil tankers and warships over the weekend.
The escalation of tensions in the Middle East has sparked concerns about crude oil supply, with Brent crude futures rising by 8% last week and WTI crude prices increasing by nearly 10%.
An average of only 10 commercial vessels passed through the Strait of Hormuz daily over the past 10 days, the lowest level since May, according to data released by analytics firm Kpler.
Priyanka Sachdeva, Head of Market Insights at Phillip Nova, warned that if tanker traffic begins to slow significantly, the market may price in a larger supply shock.