Oil prices have surged to multi-month highs as Middle East tensions escalate, with attacks on shipping in the Strait of Hormuz and warnings from Iran driving a rally in both WTI and Brent crude.
01Summary
- 01US WTI crude futures jumped 5.23% to $109.08 per barrel ahead of contract expiry on Tuesday.
- 02Brent crude for December delivery rose 1.65% to $111.36 per barrel, its highest price since May.
- 03At least 18 vessels have come under fire in the Strait of Hormuz over the past two weeks, according to ship tracker Kpler.
- 04Iran's Revolutionary Guard Corps said two oil tankers were set ablaze after hitting mines laid by its naval unit.
- 05Analysts attribute the rally to falling Middle East export volumes, a US decision to exempt the Russian shadow fleet from sanctions, and expected declines in US commercial oil stocks.
02Why it matters
This matters because higher oil prices feed directly into fuel costs, affecting household heating bills, petrol prices, and the price of goods transported by road and sea, adding to inflationary pressure for consumers and businesses.
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