US-Iran Tensions Spark Oil Price Surge

Oil prices surged as tensions between the US and Iran escalated after a weekend of attacks on Iranian tankers. The US launched strikes against three Iranian oil tankers over September 5-6, destroying one vessel in retaliation for attacks on American Navy warships with ballistic missiles.

Iran's top security official announced that a new restricted zone will be declared outside the Strait of Hormuz, starting from the US Navy blockade line and extending into parts of the Persian Gulf. This move is likely to further disrupt energy flows through the waterway.

The attacks and threats have led to increased crude prices, with Brent gaining up to 0.8 per cent to trade near $97 a barrel at the open. West Texas Intermediate was around $92.