Oil Climbs to Six-Week High as U.S.-Iran Conflict Intensifies

Oil prices climbed to a six-week high as the United States and Iran exchanged fresh strikes, further threatening energy shipments through the Middle East, while U.S. equities traded mostly flat ahead of key Big Tech earnings, Lawrence Delevingne, Johann M. Cherian and Gregor Stuart Hunter reported for Reuters.

Heightened geopolitical tensions have contributed to the rising of crude prices.

Brent crude settled 3.3% higher at $94 per barrel, its highest level since early June.

A brief détente between the United States and Iran ended this month, once again restricting tanker traffic through the strategic Strait of Hormuz. U.S. President Donald Trump also threatened additional attacks on Iranian infrastructure.

Nearly five months of conflict have depleted global oil stockpiles and fueled inflation worldwide.

Shipping disruptions could worsen following threats by Yemen's Iran-aligned Houthi rebels to target vessels in the Red Sea, another critical global shipping route. Four oil tankers carrying Saudi crude to Asia reportedly reversed course in the Bab el-Mandeb Strait after the Houthi threats.