What is driving the recent surge in oil prices, and how is the US government's new initiative against Iran expected to impact global oil markets?

The recent surge in oil prices is driven by the US push to isolate Iran’s economy, raising fears of further market disruption amid ongoing tensions in the energy-rich Middle East; West Texas Intermediate (WTI) for October is on pace for a weekly gain of about 6%, while Brent crude advanced for five straight sessions to close near $94 a barrel. US Treasury Secretary Scott Bessent confirmed that the administration will unveil details of this initiative—dubbed an 'economic D-day' by President Donald Trump—next Monday, with potential measures targeting not only Tehran but also countries trading with Iran, including China. Oil has rallied over 50% this year as the US-Iran conflict intensified, particularly around control of the Strait of Hormuz, where Bessent asserted that Washington maintains control and that ships can safely exit via a southern lane.

What are the current price levels and recent movements for WTI and Brent crude, and what do they indicate about market sentiment?

As of the report, WTI for October delivery traded near $86 a barrel and fell 0.6% to $86.31 a barrel at 6:01 a.m. in Singapore, while Brent for October settlement closed 2.4% higher at $93.78 a barrel—marking its fifth consecutive session of gains and closing near $94. These movements signal strong bullish sentiment, reflecting heightened market anxiety over potential supply disruptions stemming from escalating US economic pressure on Iran and the broader geopolitical instability in the Middle East, especially concerning the Strait of Hormuz.