Oil Prices Surge 8% Amid US-Iran Tensions

Oil prices increased by approximately 8% over the weekend, driven by heightened military tensions between the US and Iran, particularly following US strikes on Iran’s Larak Island near the Strait of Hormuz. Brent crude futures for November delivery closed at $94.77 per barrel, up from $88.10, while West Texas Intermediate (WTI) crude for October delivery rose to $90.34 per barrel from $87.06.

The escalation involved missile and drone attacks by Iran against US forces, with further US targeting in the region. The Islamic Revolutionary Guard Corps (IRGC) stated that these attacks tightened control over the Strait of Hormuz, raising market concerns about energy supply disruptions.

The UK Maritime Trade Operations (UKMTO) reported a tanker was struck by projectiles in the strait, and Iran claimed to have laid additional naval mines. Despite these tensions, reports indicated a recovery in oil flows through the strait, with US Energy Secretary Chris Wright noting over 17 million barrels passed through on Monday.