Oil prices rise to six-week highs
NEW YORK: Oil prices rose to a six-week high on Monday as Iran vowed to strike energy infrastructure across the Middle East in response to further US attacks on its assets, the latest escalation in a conflict that has sharply reduced oil supply from the region. Brent crude futures rose 85 cents, or 0.9 percent, to USD97.13 a barrel by 12:38 p.m. EDT (1638 GMT), after hitting their highest point…
Oil prices surged to a six-week peak on Monday, driven by Iran's threat to target energy infrastructure in the Middle East following increased US attacks on its assets. Brent crude futures climbed 85 cents, or 0.9%, to $97.13 a barrel, after peaking at $98.06, while US West Texas Intermediate crude rose 1.3%, or $1.15, to $92.63 a barrel.
US and Iran engaged in a series of attacks on oil tankers and warships over the weekend, intensifying a conflict that began with US and Israeli strikes on Iran on February 28. The war has severely disrupted global oil supply, prompting nations to deplete reserves to avoid shortages. In the US, gasoline and distillate fuel inventories are markedly below year-ago and five-year seasonal averages.
Tensions escalated further after Israeli strikes in southern Lebanon killed at least 12 people, and Saudi Aramco's Jazan oil refinery was also targeted. Saudi Arabia reported two seafarers died in an earlier attack by Iran. Oman evacuated 16 crew members from a tanker, and tanker traffic in the Strait of Hormuz dropped to its lowest level since May.
Iran hinted at a restricted zone outside the Strait of Hormuz, while the UAE plans alternative export routes to avoid being "held hostage" by the US-Iran conflict. OPEC+ maintained its oil output policy unchanged for October, pending the decision of new quotas.
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