Oil prices hit $97.47 a barrel amid escalating US-Iran tanker attacks
Crude futures rose as reciprocal strikes by the United States and Iran disrupted shipping in the Strait of Hormuz, with Saudi Arabia reporting damage to an Aramco refinery.
Oil prices held near six-week highs on Monday, settling at $97.47 a barrel for Brent crude futures by 1214 GMT. The gain represented a 1.2 per cent increase, following an earlier spike where the index touched its highest level since July 24 at $97.93. U.S. West Texas Intermediate crude similarly hovered near a recent high of $92.26 a barrel.
These gains occurred after the United States and Iran resumed attacks on commercial vessels. U.S. forces stated they struck three Iranian oil tankers, including one near Kharg Island. The Islamic Revolutionary Guard Corps claimed it targeted three tankers using unauthorized routes in the Strait of Hormuz and three other U.S.-linked ships.
Marisks, a maritime intelligence firm, described these Saturday actions as a major escalation, noting that commercial tankers are now used for reciprocal economic pressure. In Saudi Arabia, reports indicate an attack on the Jazan oil refinery by the Saudi Aramco group was confirmed, with damage currently being assessed. Analysts view the conflict as blurring the line between military confrontation and commercial disruption, resulting in low crude flows across the Middle East.
