Oil prices have climbed for a third consecutive session, settling at a five-week high. This increase is driven by heightened concerns regarding potential disruptions to energy flows through the vital Strait of Hormuz.
The price surge follows an escalation of hostilities and renewed fighting between the US and Iran. These developments have revived fears that the conflict could become prolonged, further disrupting oil flows through the Persian Gulf while supply risks are being compounded elsewhere.
Brent crude futures rose 56 cents, or 0.6 percent, to reach US$91.05 a barrel at 8.44am. After peaking at $94.40 a barrel on August 21, Brent has been trading in the range of $86 to $91 since the MoU lapsed.