US-Iran Tensions Spark Oil Price Spike to Near $90 Barrel

Crude oil prices have surged towards $90 per barrel as tensions between the US and Iran escalate, raising concerns about supply disruptions. The Brent crude futures rose by as much as 1% to $89.40 a barrel, while US West Texas Intermediate (WTI) crude futures gained 44 cents to $82.83 a barrel.

The recent attacks on tankers operated by Abu Dhabi National Oil Company (ADNOC) in the Strait of Hormuz and an attack on a Saudi Aramco refinery have contributed to the price increase. Market sentiment was further eroded by uncertainty over a potential diplomatic resolution to the conflict, with Iranian Foreign Minister Abbas Araqchi stating that Tehran had not yet decided whether to resume talks with the US.

The Strait of Hormuz has seen a sharp slowdown in tanker traffic, with only five commodity vessels transiting the strait on Saturday compared to 31 during the previous weekend. The United Arab Emirates also accused Iran of attacking a third ADNOC-operated vessel while it was transiting the strait on Friday.