US-Iran Tensions Spark Sharp Rise in Oil Prices
Oil prices surged on Friday, closing the week significantly higher after tensions between the US and Iran escalated. Brent crude futures settled at $92.68 a barrel, up 76 cents or 0.8%, while US West Texas Intermediate (WTI) crude futures finished at $91.48 a barrel, an increase of 18 cents or 0.20%.
The uptick in oil prices combined with a steeper rise in fuel costs has pushed inflation and government borrowing rates higher worldwide, intensifying fears that global economic growth may slow without relief.
US Vice President JD Vance stated the US would not engage in peace talks with Iran until it stops attacking ships in the Strait of Hormuz. This stance, combined with Iran's determination to maintain its hardline approach, has added upward pressure on oil prices.