US-Iran Tensions Spark Oil Price Surge to Over $92 per Barrel
Oil prices surged to above $92 per barrel on Monday, as tensions between the US and Iran escalated in the Middle East. The price increase marks an extension of last week's gains, driven by concerns over potential disruptions to energy flows from the region.
The US targeted three Iranian oil tankers over the weekend in retaliation for ballistic missile attacks on US Navy warships. In response, Tehran announced that a new restricted zone would be established outside the Strait of Hormuz, including a US Navy blockade line and extending into parts of the Persian Gulf.
US Energy Secretary Chris Wright stated that the US would maintain its naval presence in the Middle East, including the blockade designed to curb Iranian oil exports and ensure safe passage for commercial vessels through Hormuz. The move has pushed oil prices about 10% higher as markets reassess geopolitical and supply risks.