US-Iran Tensions Spark Brent Crude Price Surge

The price of Brent crude oil has risen by $2.40/bbl to trade at $94.77/bbl as tensions between the US and Iran escalate.

Analysts from ING Bank noted that oil prices have reached their highest level in over a month due to increased geopolitical risk premiums.

The US Central Command (CENTCOM) has resumed strikes on Iranian assets, while Tehran has warned of major consequences if Washington continues its drone barrage.

In response to the heightened tensions, Iran hit two oil tankers in the region yesterday, and the US carried out additional overnight strikes on Iranian targets.

However, a positive statement from US Secretary of Energy Chris Wright may have put downward pressure on Brent's price. Wright claimed that 17 million bbls of crude oil transited the Strait of Hormuz on Monday, marking the highest level of crude oil to pass through the narrow waterway in recent months.