Oil Prices Soar to 5-Month High Amid Middle East Tensions

• Crude oil prices reached a 5-month high, driven by escalating tensions in the Middle East and potential US action against Iran.
• Brent crude futures closed at their highest since July 31, while U.S. West Texas Intermediate (WTI) hit its highest since September 26.
• Concerns are focused on the Strait of Hormuz, a critical shipping lane for crude and liquefied natural gas, which could be disrupted.
• Iran reportedly warned ships of a live-firing drill in the Strait of Hormuz on Sunday and Monday, further fueling supply disruption fears.
• The potential for military attacks if Iran does not agree to a nuclear deal adds a significant risk premium to oil prices.

Why It Matters: Middle East tensions and potential supply disruptions are driving crude oil prices to a 5-month peak.