US Strike on Iran Boosts Oil Prices Amid Ongoing Tensions
Oil prices rose at the start of the week as tensions in the Middle East flared up again, highlighting risks to oil flows from the region. The US military struck Iranian rocket launchers preparing to send mines into the Strait of Hormuz on Sunday.
The strike came after weeks of relative calm, and Brent crude for November rose towards $90 a barrel while West Texas Intermediate was near $85.
Chris Weston, head of research at Pepperstone Group Ltd., said that the direct attack on Iranian launch sites would do little to advance talks between the two sides. He added that there seemed to be little appetite to push crude prices higher.
About 6 million to 8 million barrels a day of crude are moving through Hormuz, despite ongoing conflict in the region.