Oil prices rise amid US-Iran tensions and Strait of Hormuz instability

Oil prices have risen for four consecutive sessions amid ongoing tensions between the United States and Iran. Brent crude is trading at $91.56 per barrel, while West Texas Intermediate (WTI) has reached $85.47 per barrel. The conflict, which has persisted for nearly six months, remains unresolved as President Donald Trump stated there are currently no negotiations underway with Tehran regarding control of the Strait of Hormuz.

Regional instability is contributing to market volatility. A vessel exiting the Strait was reportedly hit by a projectile, resulting in one casualty, and two Chinese supertankers turned back after attempting to traverse the waterway. Additionally, the United Arab Emirates has announced intentions to suspend all commercial and financial transactions with Iran due to regional escalations.

In the United States, the average gasoline price has risen above $4 per gallon for the first time since July, reaching an average of $4.08. This increase reflects the broader pressure on energy markets caused by Middle East instability and the war in Ukraine. Analysts suggest the rise in fuel costs since February has cost Americans more than $40 billion.