Brent oil tops $90 as US, Iran expand strikes in the Middle East

Global oil prices surged past the $90 per barrel mark for Brent crude, reaching their highest level since June 11. This significant price jump is directly linked to escalating military actions between the United States and Iran in the Middle East, which have disrupted crucial oil shipping routes.

The conflict has intensified, particularly impacting transit through the Strait of Hormuz, a vital chokepoint for global oil shipments. Brent crude futures climbed by 2.37%, settling at $90.19. This rise follows a substantial 15.9% gain last week, marking the largest weekly increase since April.

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ICE Brent broke above $90 per barrel this morning with no let-up in the escalation in the Gulf.

Similarly, US West Texas Intermediate (WTI) crude experienced a notable increase, trading at $84.20 a barrel, up 2.07%. WTI prices also saw a significant weekly ascent of 15.5%, the largest since early March. The ongoing exchange of strikes between the US and Iran is proving costly, contributing to market volatility and supply concerns.

Analysts noted the breach of the $90 threshold for ICE Brent, attributing it to the continued escalation in the Gulf region. The deadly exchanges between the US and Iran are a primary driver of the current market conditions, raising concerns about potential further disruptions to oil supply.

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The US and Iran continue to exchange strikes, which are proving to be deadly for both sides.