Oil Prices Rise to Six-Week High Amid US-Iran Strikes, Nuclear Deal Doubts

Oil prices rose to a six-week high on Monday as the U.S. and Iran traded strikes over the weekend.

Brent crude futures climbed 1.5% to $97.73 per barrel, reaching $97.93, the highest since July 23. West Texas Intermediate (WTI) also increased 1.8% to $93.10, its highest since late July. Saudi Aramco oil facilities were hit in fresh strikes on Monday in Jizan, home to a 400,000-barrel-per-day oil refinery, according to a Financial Times report.

Responsibility for this attack is not immediately clear. The U.S. military struck three Iranian oil tankers on Saturday after Iran launched ballistic missiles at two Navy warships, U.S. Central Command (CENTCOM) said. Iran's Islamic Revolutionary Guard Corps stated it targeted three oil tankers in the Strait of Hormuz and three U.S.-linked vessels elsewhere. The Iranian Foreign Ministry denounced the attacks on commercial vessels as a war crime and an act of economic warfare.

The U.S., Britain, France, and Germany are preparing to seek a resolution referring Iran to the UN Security Council. U.S. Energy Secretary Chris Wright stated on Sunday that a nuclear agreement with Iran may not happen, suggesting it might involve destroying their capabilities to do it or awaiting a new administration in Iran. Wright also said the U.S. military's biggest role in the Gulf region is to stop Iranian energy exports, aiming to strangle their economy.

He declined to declare the Strait of Hormuz safe for oil tankers without U.S. Navy escort. The conflict between the U.S. and Iran resumed about a week ago after a month of calm, surpassing the six-month mark in August.