Brent Surges Above $90 as US-Iran Escalation Rise

By Staff, Agencies

Oil prices climbed 3% on Monday, pushing Brent crude above $90 a barrel as the United States and Iran expanded attacks in the Middle East disrupted energy flows through the Strait of Hormuz.

Meanwhile, Brent crude futures climbed $2.69, or 3.05%, to $90.79 by 2343 GMT, touching the highest since June 11, extending ‌gains after ⁠rising ⁠15.9% last week, its biggest weekly gain since April.

Similarly, US West Texas Intermediate crude was at $84.68 a barrel, up $2.19, or 2.65%, the loftiest since June 12. Front-month prices gained 15.5% last week, the largest weekly ascent since early March.

Elsewhere, tensions escalated over the weekend as the US carried out a ninth consecutive night of attacks against Iran, while US allies Kuwait and Bahrain reported additional Iranian strikes.

Amid the growing confrontation, both sides have taken aim at shipping traffic, with the US saying ⁠it is enforcing a naval blockade on Iranian ports, and Iran saying it targets vessels violating its rules on navigating the Strait of Hormuz, which usually handles one-fifth of global oil trade.

In addition, the United Kingdom Maritime Trade Operations reported that a vessel caught fire northwest of Oman’s Kumzar early Monday.

According to analysts, Barclays’ Amarpreet Singh warned that the coming days would determine the sustainability of oil exports from the region amid renewed blockades.

Moreover, Singh said oil markets may be underestimating the potential impact on inventories, which are currently at their tightest levels in five years.

Finally, LSEG data showed that only four vessels transited the Strait of Hormuz on Sunday, down from eight the previous day, as oil shipments faced mounting uncertainty.