US-Iran Tensions Spark Oil Price Surge Amid Hormuz Disruption Fears
US-Iran tensions have led to a surge in oil prices as fears of disruption to shipments through the Strait of Hormuz resurface.
Brent crude and WTI opened the new week sharply higher, with Brent testing its 100-day moving average at $97. The move follows a sharp recovery from WTI's recent low near $79.65.
The potential threat to commercial shipping has raised the geopolitical risk premium in crude oil, with any prolonged disruption through Hormuz potentially sending oil prices substantially higher and increasing global inflation pressures.