US-Iran Tensions Spark Crude Oil Price Surge

Crude oil prices surged on Tuesday after tensions between the US and Iran escalated. The price of October WTI crude oil (CLV26) closed up +4.46 (+5.20%) to a six-week high, while October RBOB gasoline (RBV26) closed up +0.0581 (+1.89%).

The increase in prices came after two oil supertankers were struck by projectiles on Monday while attempting to exit the Strait of Hormuz. The US had previously targeted Iranian rocket launchers preparing to send mines into the Strait, and Iran retaliated with missiles and drones against US air bases in Jordan and the UAE.

The crisis has significant implications for global energy flows, as the Strait of Hormuz is a critical chokepoint for oil exports. Additionally, Israel's attacks on Iran-backed Hezbollah in Lebanon have dampened prospects for an end to hostilities in the Middle East.