US-Iran Tensions Spark Oil Price Surge Amid Escalating Disruptions

Oil prices surged on Tuesday amid escalating tensions between the US and Iran. According to reports, US Treasury Secretary Scott Bessent announced that all Iranian airlines would be suspended starting Wednesday. The move aims to restrict access to fuel, landing services, ticket sales, and US dollar-based transaction systems for these airlines.

The Brent crude futures contract for November delivery rose 1.2 percent to $101.54 a barrel, while the West Texas Intermediate (WTI) futures contract for October delivery increased by 0.77 percent to $96.55 a barrel. This development has sparked concerns about potential disruptions in global oil supplies.

Lukman Otunuga, Head of Market Research at FXTM, warned that confirmation of direct talks between Washington and Tehran could lead to additional selling pressure on prices, potentially pushing crude oil prices higher. Iran has also threatened a major response if any new escalation occurs.