New Delhi, July 20: Brent crude oil today was trading at its highest price since June in the wake of increased fighting in West Asia.
Crude surged over the past week as the US and Iran traded fire, engulfing the region and raising fears of a sustained disruption in the Strait of Hormuz, through which around a fifth of the world’s seaborne oil moves.
Both Brent crude and US benchmark West Texas Intermediate extended their gains after climbing more than four percent at the end of last week. Brent rose above $91 a barrel, its highest price since June 11.
The latest rally in the crude prices came after another weekend of escalating fighting, with the United States carrying out fresh strikes on Iranian targets and Tehran responding with attacks on regional military assets in the Gulf.
The conflicting signals have left investors struggling to gauge the outlook for markets.
Higher crude prices have revived concerns that inflation could remain elevated and complicate the path to lower interest rates, but some analysts argue the broader economic backdrop is becoming more supportive. (BVI)
