US Strikes Against Iran Send Oil Prices Soaring
Crude oil prices surged on Monday following reports of US strikes against Iranian tankers in the Gulf of Oman. The Brent crude index rose as much as 0.8% to near $97 a barrel before easing, while October WTI gained 0.6% to $91.99.
The latest market move comes after a weekend of heightened tensions between the US and Iran, with Washington claiming that three Iranian oil tankers were targeted in retaliation for ballistic missiles fired at US Navy warships.
According to the US Central Command, one of the tankers, the Suezmax Kylo, sank in the Gulf of Oman. Tehran has also claimed responsibility for striking three tankers, but this claim has not been independently corroborated.
Hedge funds have increased their bets on Brent crude, with net long wagers rising to their highest level since June. Energy Secretary Chris Wright said there will be no letup in the US naval presence, including a blockade intended to curb Iranian oil exports and keep commercial ships moving through the strait.