Iran-U.S. tensions over Gulf send oil prices soaring

The Guardian reports: The price of oil jumped by $4 a barrel on Tuesday as tension between Iran and the US fuelled fears of disruptions to supply.

Brent crude spot prices rose from $107 to $111 after Iran threatened to take action if the US navy moves an aircraft carrier into the Gulf.

US light crude, which dropped below $100 a barrel before Christmas, hit $102.23 a barrel – a rise of $3.40 on the day.

Analysts said the jump in prices was likely to continue as long as Tehran appeared ready to use force against US warships patrolling the strategically vital strait of Hormuz at the mouth of the Gulf.

Iran’s army chief, General Ataollah Salehi, warned a US aircraft carrier not to return to the Gulf or risk attack by new surface-to-sea missiles tested by the military in recent days.

Tehran’s latest tough rhetoric over the waterway is part of a feud with the US over new sanctions designed to discourage the Iranian state from developing nuclear weapons.

Salehi spoke as a 10-day Iranian naval exercise ended near the strait of Hormuz. Iranian officials have said the drill aimed to show that Iran could close the shipping route, as it has threatened to do if the US brings into force strong new sanctions over Iran’s nuclear programme.

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One thought on “Iran-U.S. tensions over Gulf send oil prices soaring

  1. Norman

    How does that old commercial go: “the market goes up, you make money, the market goes down, you make money”. Do the powers that be, even care? The public gets screwed either way. Again, brought to you by your friendly Financial institution.

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