As oil tops US$97, US-Iran war escalation has markets bracing for supply risks
Global oil prices rose above US$97 per barrel following an escalation in hostilities between the United States and Iran. Markets are reacting to concerns over supply chain disruptions in the Strait of Hormuz.
Why it matters
Geopolitical conflict in the Middle East directly impacts global energy costs and economic stability.
An overnight escalation in hostilities between the United States and Iran pushed global oil benchmark Brent futures above US$97 a barrel at one point on Wednesday, marking their highest intraday level since early June – though analysts said prices are unlikely to match the peak seen earlier this year.
The latest surge followed fresh US air strikes on Iranian targets on Tuesday, prompting retaliatory strikes by Tehran. Iran launched missiles and drones at sites across the region and targeted US-linked assets in Jordan, according to an Associated Press report on Wednesday.
CNN also reported on Tuesday that Iranian state broadcaster IRIB had cited multiple explosions in the Strait of Hormuz, one of the world’s most important energy-shipping chokepoints.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in