WTI Oil Prices Soar Above $86 Amid Escalating US-Iran Tensions
Oil prices continued their upward trend as tensions between the U.S. and Iran escalated. The price of West Texas Intermediate (WTI) jumped to over $86 a barrel, its biggest one-day gain in three weeks.
The surge came after military clashes between Washington and Tehran resumed, with the U.S. striking an Iranian island in the Strait of Hormuz and Iran retaliating by attacking the United Arab Emirates and Jordan.
Uncertainty surrounding the Strait of Hormuz has pushed prices higher, as disruptions to crude shipments through the waterway have been ongoing since the outbreak of the war.
Bart Melek, TD Securities' global head of commodity strategy, stated that investors reduced net long crude positions last week due to lingering uncertainty over the conflict's next phase.