Brent crude oil prices climbed above $90 per barrel on Monday as escalating military tensions between the United States and Iran raised concerns over potential disruptions to global oil supplies through the Strait of Hormuz.
Brent crude futures rose $2.09, or 2.37 percent, to $90.19 per barrel during early trading, reaching their highest level since June 11 after recording a 15.9 percent gain last week the largest weekly increase since April.
US West Texas Intermediate (WTI) crude also advanced, rising $1.71, or 2.07 percent, to $84.20 per barrel, marking its highest level since June 12. WTI gained 15.5 percent last week, its strongest weekly performance since early March.
Gulf Tensions Fuel Oil Market Rally
The latest surge in oil prices follows intensified military exchanges between the United States and Iran over the weekend.
According to reports, the United States carried out a ninth consecutive night of strikes against Iranian targets, while US allies Kuwait and Bahrain also reported attacks attributed to Iran.
“ICE Brent broke above $90 per barrel this morning with no let-up in the escalation in the Gulf,” analysts at ING said in a market note.
Analysts warned that continued escalation could further threaten energy supplies from the Gulf region.
They added that if tensions continue to rise, the region could face broader disruptions affecting oil production and transportation.
Strait of Hormuz Remains in Focus
The Islamic Revolutionary Guard Corps (IRGC) claimed that two oil tankers exploded and became immobilized while attempting to use what it described as an unsafe southern route through the Strait of Hormuz. Iran alleged the vessels had been encouraged by the US military to use the passage.
Reuters said it could not independently verify the incident.
The Strait of Hormuz is one of the world’s most important energy chokepoints, handling nearly one-fifth of global oil trade. In recent days, both the United States and Iran have increased pressure on shipping traffic in the region, raising concerns over supply disruptions.
The United Kingdom Maritime Trade Operations (UKMTO) also reported that a vessel was on fire northwest of Oman’s Kumzar early Monday.
Shipping Activity Declines
Market data showed a decline in vessel movements through the Strait of Hormuz as security concerns intensified.
According to LSEG data, only four vessels transited the strait on Sunday compared with eight the previous day. Since Friday, at least three oil product tankers and one Very Large Crude Carrier (VLCC) have entered the waterway to load crude oil.
Analysts say investors will closely monitor developments in the Gulf, as any prolonged disruption to shipping could tighten global oil supplies and push prices even higher.
