Oil prices hit six-week highs on Monday and Tuesday as escalating tensions between the United States and Iran stoked concerns over potential supply disruptions in the Middle East. The price surge follows a weekend in which the two adversaries traded strikes, leading to renewed conflict and reduced oil supply from the region.
Tensions intensified as Iran-backed Houthis launched a wave of strikes on energy-sector facilities in southern Saudi Arabia, injuring more than 70 people and causing temporary pauses in operations. In response to U.S. attacks on its assets, Tehran vowed to strike energy infrastructure across the Middle East and threatened the United States with economic warfare. Additionally, strikes between the two nations have disrupted traffic in the crucial Strait of Hormuz.
Brent, the international benchmark, touched $99 a barrel and neared $100 per barrel. Brent crude futures climbed 34 cents, or 0.35 per cent, to US$97.34 a barrel. Analysts expect the price of Brent crude to remain elevated for the rest of the year.