Brent crude oil futures rose by $1.03 to reach $97.31 per barrel, peaking at $98.06 during intraday trading. This marks the highest price since July 24.
Since last week, the price of Brent has surged by 8%, while American West Texas Intermediate (WTI) increased by 10%.
Goldman Sachs anticipates that oil prices could escalate to $120 per barrel if maritime attacks in the Strait of Hormuz intensify.
Background
- The active phase of conflict between the US and Iran began on February 28 of this year, when the US, supported by Israel, carried out airstrikes in Iran, resulting in the deaths of several high-ranking officials, including Supreme Leader Ayatollah Ali Khamenei.
- On April 12, US President Donald Trump announced a blockade of the Strait of Hormuz by US naval forces. A ceasefire agreement was reached between the US and Iran on May 28, which established a 60-day memorandum to negotiate Iran’s nuclear program. On June 1, Trump stated he had met Iran’s conditions for halting hostilities between Israel and Lebanon.
- By June 18, the US and Iran signed a memorandum of understanding to end the war, leading to CENTCOM’s announcement of the official lifting of the blockade on Iranian ports. However, renewed exchanges of strikes prompted Trump to declare the ceasefire over on July 8. Throughout August, the two nations continued to clash.
- Since then, negotiations have been facilitated by Pakistan, but public statements from US and Iranian leaders indicate that a resolution remains elusive.
