SINGAPORE: Oil prices climbed about 3% on Monday, with Brent crude rising above $90 per barrel, as escalating military exchanges between the United States and Iran heightened concerns over oil shipments through the Strait of Hormuz.
The gains followed another weekend of attacks in the Middle East, raising fears of potential disruptions to one of the world’s most important energy shipping routes.
How did oil prices move?
Brent crude futures rose $2.77, or 3.14%, to $90.87 per barrel, reaching their highest level since June 11.
US West Texas Intermediate (WTI) crude gained $2.35, or 2.85%, to $84.84 per barrel, marking its highest level since June 12.
Both benchmarks extended sharp gains recorded during the previous week.
Why are oil prices rising?
Markets reacted to the continuing exchange of military strikes between the United States and Iran, which has increased concerns over the security of shipping through the Strait of Hormuz.
The Islamic Revolutionary Guard Corps (IRGC) claimed two oil tankers exploded while transiting the waterway, although Reuters could not independently verify the incident.
Separately, the United Kingdom Maritime Trade Operations (UKMTO) reported a vessel on fire near the Omani coast but said the cause remained under investigation.
Why is the Strait of Hormuz important?
The Strait of Hormuz is one of the world’s busiest energy corridors, carrying roughly one-fifth of global oil trade.
According to LSEG shipping data, only four vessels transited the strait on Sunday, compared with eight the previous day, highlighting increased caution among commercial shipping operators.
What are analysts saying?
Market analysts said continued escalation between Washington and Tehran could further tighten global oil supplies if disruptions to Gulf shipping persist.
They warned that sustained instability in the region could place additional pressure on energy markets, where inventories are already relatively tight by historical standards.