Renewed US aggression on Iran drives oil prices higher

SANAA, Sept. 04 (YPA) – Global oil prices continue to rise due to renewed US military aggression against Iran and the accompanying disruption and growing risks to navigation in the Strait of Hormuz, one of the world’s primary energy transit chokepoints.

Oil prices recorded their largest weekly gains since mid-July. On Friday, Brent crude futures settled at $95.52 a barrel, while US West Texas Intermediate (WTI) crude rose by 0.1% to $91.36. Over the week, Brent jumped 7.6%, while US crude climbed 10.4%, both heading toward their strongest weekly gains since the week ending July 20.

This surge coincides with the renewed US aggression against Iran and the resulting escalation of concerns regarding the security of navigation in the Strait of Hormuz, prompting markets to price in higher risks to oil tanker movements and crude supplies.

In this context, Dr. Furat Al-Musawi, Head of the Iraq Energy Center, confirmed that the return to direct confrontations and retaliatory strikes between the United States and Iran reflects the faltering of diplomatic tracks and the failure to reach a comprehensive political settlement.

Al-Musawi explained that Brent crude will remain prone to trading at elevated levels, with the possibility of reaching $100 a barrel remaining viable if the threat to the Strait of Hormuz escalates. He emphasized that the market could shift from pricing in “risk” to pricing in an “actual shortage” of barrels if the confrontation impacts ports and tankers, threatening to further disrupt oil supplies and drive up global prices.

Thus, the US military escalation in the region stands out as a key factor behind the new wave of rising oil prices, amid fears that continued military pressure on Iran and the widening scope of tension around the Strait of Hormuz will lead to further increases in the global cost of energy.

YPA