Oil jumps as U.S.-Iran tensions escalate

Global oil prices rose sharply as tensions between the United States and Iran intensified in the Middle East, Anews.az reported.

Brent crude futures for November delivery climbed 3.05% to $90.79 a barrel, their highest level since June 11. Brent gained 15.9% last week, marking its strongest weekly increase since April.

U.S. West Texas Intermediate (WTI) crude rose 2.65% to $84.68 a barrel, the highest since June 12. WTI advanced 15.5% over the week, its strongest weekly performance since early March.

APA-Economics said the rally was driven by an escalation in hostilities between the United States and Iran and growing threats to energy shipments through the Strait of Hormuz. The agency reported that the United States had announced a naval blockade of Iranian ports, while Iran said it had taken action against vessels it claimed had violated navigation rules in the strait.

Analysts cited by Anews.az said the increased risks in the Strait of Hormuz, through which around one-fifth of global seaborne oil trade passes, had heightened concerns over potential supply disruptions and pushed oil prices higher.

N. Tebrizli