Crude oil prices have reached their highest levels in four weeks, driven by escalating tensions between Washington and Tehran and the reimposition of a US naval blockade on Iran.
Brent Crude Surges
Brent crude, the international benchmark, jumped $3.79 per barrel to $87.08, a 4.55% increase, marking its highest point since June 12, before the ceasefire. The US and Iran had signed a memorandum of understanding on June 17 to end the conflict and had been engaged in negotiations for a permanent peace deal.
Iran stated on Monday that it continues talks with mediators from Qatar, Pakistan, and Oman to prevent further escalation. Former President Donald Trump declared the ceasefire over last week but left the door open for negotiations.
US West Texas Intermediate Rises
US West Texas Intermediate (WTI) crude climbed to a high of $81.25 per barrel and is currently trading at $80.92, up 2.8%.
Soni Kumari, an analyst at ANZ bank, told Reuters: “What we think is that the peak of the escalation is behind us, but there are upside risks to oil prices if these disruptions continue and that will keep prices in the $85-$90 range.”
The ongoing tensions and supply disruptions continue to pose risks to global oil markets, with analysts closely monitoring developments in the Middle East.
