Oil prices surged on Friday as the tensions between the United States and Iran were escalating amid renewed strikes.
As of 18:15 Eastern Time on Sunday, the West Texas Intermediate for August delivery rose to a high of 85.17 U.S. dollars a barrel, up 2.68 dollars, or 3.25 percent, on the New York Mercantile Exchange, while Brent crude for September delivery once reached 90.97 U.S. dollars a barrel on the London ICE Futures Exchange, up 2.87 U.S. dollars, or 3.26 percent.
Iran launched renewed attacks on U.S. Gulf allies on Saturday after the U.S. Central Command concluded a new round of strikes on Iran overnight.
Iran's semi-official Mehr news agency said that explosions were reported in Bushehr province as well as Hormozgan province's Sirik and Qeshm counties, while official IRNA news agency said five blasts were heard in Iran's central Yazd province.
Late on Friday, the U.S. Central Command said in a post on social media platform X that the U.S. forces ended the seventh consecutive night of strikes against Iran, hitting surveillance sites, military logistics infrastructure, underground weapons storage, and maritime capabilities.
Crude oil futures jump as US-Iran conflict continues
Iranian President Masoud Pezeshkian said on Monday that his country is engaged in a "full-scale war" with the United States, stressing the importance of maintaining economic stability during wartime.
"Today's war is not a war of merely missiles. The enemy has come to the conclusion that it cannot force the Iranian nation to surrender with military strikes," Pezeshkian said at a meeting of the High Council of the Judiciary in Tehran, according to a statement published on the website of his office.
He said that the "enemy" has waged a "hybrid war" against Iran, describing the economy and the people's livelihood as the most important areas of confrontation with the "enemy," and highlighting the necessity to maintain economic stability and protect social assets as two priorities of "the system of governance during wartime."
Pezeshkian added that his government "fully protected" Iran's national rights and interests in negotiations with the United States, including in the memorandum of understanding (MoU) signed on June 18.
Iran has received proposals from mediators, Foreign Ministry spokesman Esmaeil Baghaei said on Monday, amid continued tit-for-tat strikes between Iran and the United States.
Baghaei made the remarks at a weekly press conference in Tehran without giving details, when asked whether he could confirm reports about new proposals by Qatar for the revival of U.S.-Iran negotiations and a 10-day ceasefire.
Baghaei stressed that Iran's diplomatic apparatus remains active alongside its military responses to U.S. attacks, while condemning recent U.S. strikes against civilian infrastructure, including bridges and medical centers, as violating "people's rights to life, security and human dignity."
On the peace memorandum of understanding signed with Washington on June 18, he said the agreement's "text is completely clear," and Washington has no pretext to breach its promises under it.
He said Tehran adhered to a "commitment for commitment" principle until Washington repeatedly violated its commitments, prompting Tehran to cease its own obligations.
On the Strait of Hormuz, he affirmed Iran's resolve to exercise its sovereignty over the waterway and prevent any "misuse" against its interests.
The United States has launched multiple strikes on Iran's southern provinces over the past week, saying they were aimed at "degrading Iran's ability to threaten commercial shipping."
Iran has responded with waves of missile and drone attacks targeting U.S. military bases and facilities in regional countries, including Kuwait, Bahrain, and Jordan.
The escalation comes as the two sides, under their MoU, were scheduled to hold negotiations within a 60-day period to reach a final agreement.
Iranian president says his country in "full-scale war" with U.S.
