Brent Oil: Prices Climb Above $90 as US-Iran Conflict Disrupts Gulf Shipping
Escalating military tensions and reduced tanker traffic through the Strait of Hormuz fuel concerns over global oil supplies.
Brent crude prices rise above $90 a barrel as tensions in the Gulf disrupt oil shipping.
Brent Oil prices climbed above $90 a barrel on Monday as escalating military tensions between the United States and Iran disrupted oil shipments through the Strait of Hormuz, raising fears over global energy supplies.
Brent crude futures rose 2.37% to $90.19 per barrel, their highest level since June 11. The benchmark had already surged 15.9% last week, marking its strongest weekly gain since April.
US West Texas Intermediate (WTI) crude also advanced, rising 2.07% to $84.20 per barrel. The US benchmark reached its highest level since June 12 after gaining 15.5% during the previous week.
Oil markets reacted after the United States carried out a ninth consecutive night of strikes against Iran. Meanwhile, Kuwait and Bahrain reported fresh Iranian attacks, adding to concerns over regional stability.
Analysts at ING said Brent crude had moved above the $90 mark because there was no sign of easing tensions in the Gulf. They warned that continued military escalation could trigger wider attacks across the region.
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The Islamic Revolutionary Guard Corps (IRGC) claimed that two oil tankers exploded and became stranded after attempting to pass through what it described as an unsafe southern route in the Strait of Hormuz. The group alleged the vessels had been encouraged by the US military to use the route. Reuters said it could not independently verify the claim.
The Strait of Hormuz handles around one-fifth of global oil trade. Recent military activity has affected commercial shipping, with the United States enforcing a naval blockade on Iranian ports while Iran says it is targeting vessels that violate its navigation rules.
The United Kingdom Maritime Trade Operations (UKMTO) also reported that a vessel caught fire northwest of Kumzar, Oman, early on Monday.
According to LSEG shipping data, only four vessels passed through the Strait of Hormuz on Sunday, compared with eight the previous day. The figures suggest a slowdown in maritime traffic as security risks increase.
Analysts at Barclays said the coming weeks will determine whether oil exports from the Gulf can remain stable under the renewed disruption. They also warned that global oil inventories are already at their tightest levels in five years, increasing the risk of further price increases if supply interruptions continue.
