Brent crude oil has reached $92.09 a barrel, its highest price since June 11, driven by escalating tensions between Iran and the United States in the Middle East. The surge comes as Iran targeted US radar and air defence installations in the Gulf, marking a significant escalation in the ongoing conflict.
At around 0130 GMT, Brent crude was trading up 1.2 percent, reflecting growing concerns over the stability of global oil supplies. West Texas Intermediate (WTI), the main US oil benchmark, also climbed 1.1 percent to $85.23.
Iran has intensified its attacks in the Middle East, resuming its war with the United States. The country claims to have attacked and stopped two 'non-compliant oil tankers' attempting to transit the Hormuz strait. Tehran has been attempting to blockade the strait, through which a fifth of the world's oil supplies transited before the war, as leverage since the US-Israeli attack that kickstarted the conflict in February.
The Hormuz strait remains a critical chokepoint for global oil trade. Any disruption in this region has immediate and significant impacts on oil prices worldwide. The recent actions by Iran highlight the fragile nature of global oil supply chains and the potential for rapid price fluctuations in response to geopolitical events.
Market analysts are closely monitoring the situation, with many predicting further volatility in oil prices if the conflict continues to escalate. The resumption of hostilities between Iran and the United States has reintroduced uncertainty into the global oil market, prompting traders to reassess their positions.
