US-Iran Tensions Spark Oil Price Surge
A recent escalation in tensions between the US and Iran has sent oil prices soaring.
On Sunday, US forces struck two Iranian launchers on Larak Island in the Strait of Hormuz, a key route for global oil supplies. In response, Iran attacked two US air bases in Jordan, according to Iranian media citing the Islamic Revolutionary Guard Corps (IRGC).
The incident has raised concerns about the security of shipping through the Strait of Hormuz and has led to increased caution among shipping companies.
Suvro Sarkar, head of energy research at Singapore-based DBS, noted that each new escalation could further delay the reopening of the strait. He predicted that oil prices would remain in the $85-$95 per barrel range unless there was greater clarity over the situation in the Strait of Hormuz.
The price surge saw Brent crude futures rise by 2.51 percent to $90.31 a barrel, while US West Texas Intermediate (WTI) crude climbed 2.19 percent to $85.23 a barrel.