News analysis

US and Iran heading towards more confrontation

Commodity markets often overreact to political developments. But the huge spike in the prices of oil - the biggest single jump since some of the current oil futures markets were created more than three decades ago - is, for once, perfectly justified.

The weekend attacks on Saudi oil facilities represent a significant escalation in Middle East tensions. And they could foreshadow the start of a particularly dangerous phase in the confrontation between the United States and Iran.

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A version of this article appeared in the print edition of The Straits Times on September 17, 2019, with the headline 'US and Iran heading towards more confrontation'. Print Edition | Subscribe