Escalation of US-Iran Conflict Drives Oil Prices Up 3%

Increased tensions between the United States and Iran, which have included exchanges of attacks for more than a week, have led to a roughly 3% rise in oil prices.

The international benchmark, Brent crude, rose to $90.78 per barrel, while U.S. crude oil reached $84.85 per barrel.

This increase comes at a time when ship traffic in the Strait of Hormuz, a key chokepoint through which about 20% of the world’s oil supply passes, has decreased due to instability in the region. The United States has resumed a naval blockade of Iranian ports, and some vessels are choosing alternative routes along the coast of Oman.

Vehicle fuel has also become more expensive. The national average in the U.S. has reached $3.99 per gallon, representing an increase of about 34% compared to the period before the conflict began.

Financial markets have also shown signs of impact from these developments, with futures contracts for the Dow Jones, S&P 500, and Nasdaq indexes recording a slight drop of about 0.2%.