Oil prices are hovering close to seven-month highs as concerns over a potential military conflict between the United States and Iran continue to unsettle investors.
Recent trading data indicates that Brent crude futures reached $71.22 per barrel, reflecting an increase of 45 cents, or 0.64%. Meanwhile, West Texas Intermediate (WTI) futures rose by 0.64%, or 42 cents, to $66.05.
The price of Brent has not been this high since July 31, while WTI has seen its highest levels since August 4. Both contracts are maintaining these elevated price points.
The primary driver behind this price surge is the apprehension surrounding a prolonged conflict between the U.S. and Iran, which could disrupt oil supply chains.
In light of escalating tensions, Iran and China have expedited negotiations regarding the acquisition of Chinese anti-ship cruise missiles, potentially aimed at U.S. naval forces concentrated near the Iranian coast.
While geopolitical tensions are bolstering prices, the market is also grappling with concerns regarding a significant increase in oil inventories, as global supply continues to outpace demand.
According to sources, the American Petroleum Institute reported a substantial rise in U.S. oil inventories, with an increase of 11.43 million barrels over the past week. However, gasoline and distillate stocks have seen a decline.
Oil prices are experiencing upward momentum, driven by fears of a U.S.-Iran conflict that could disrupt oil supplies. Despite rising prices, concerns over increasing inventories persist, highlighting a complex market dynamic.