Brent crude oil prices experienced a 2% increase on Monday, surpassing the $90 per barrel mark, due to rising tensions between the U.S. and Iran in the Middle East, which have disrupted oil transport through the Strait of Hormuz.
As of 0241 GMT, Brent crude futures rose by $2.09, or 2.37%, reaching $90.19, marking the highest price since June 11. This follows a significant increase of 15.9% the previous week, representing the largest weekly rise since April.
Meanwhile, U.S. West Texas Intermediate (WTI) crude was priced at $84.20 per barrel, gaining $1.71, or 2.07%, the highest since June 12. WTI also saw a 15.5% rise last week, its most substantial weekly climb since early March.
The conflict in the Middle East intensified over the weekend, with the U.S. launching its ninth consecutive night of attacks against Iran, while U.S. allies, including Kuwait and Bahrain, reported increased Iranian strikes.
ING analysts noted, “ICE Brent surpassed $90 per barrel today, with no signs of de-escalation in the Gulf region.” They added, “The ongoing exchange of strikes between the U.S. and Iran has resulted in casualties on both sides. If this situation escalates further, we may witness widespread attacks throughout the Gulf.”
The Islamic Revolutionary Guard Corps reported on Monday that two oil tankers had suffered explosions and were immobilized after attempting to navigate what they termed an unsafe southern route through the Strait of Hormuz, claiming these vessels were encouraged by the U.S. military to use that passage.
Reuters was unable to independently confirm this incident.
In recent days, both parties have targeted maritime traffic, with the U.S. enforcing a naval blockade on Iranian ports, while Iran has vowed to target vessels that breach its navigation regulations in the Strait of Hormuz, a critical route for one-fifth of global oil trade.
The United Kingdom Maritime Trade Operations agency reported a vessel was ablaze northwest of Oman’s Kumzar early on Monday.
Barclays analyst Amarpreet Singh commented, “In the coming days and weeks, we will gain better insights into the sustainable level of oil exports from the region amid renewed dual blockades.” He cautioned, “Currently, we believe oil markets may be overly optimistic regarding the potential impact on inventories, which are tighter now than at any point in the past five years.”
According to LSEG data, only four vessels transited through the Strait of Hormuz on Sunday, a decrease from eight the previous day. Since Friday, at least three oil products tankers and one Very Large Crude Carrier have entered the strait to load oil.
