Brent crude prices surged above $90 per barrel on Monday as renewed military attacks between the United States and Iran intensified fears of disruptions to global oil supplies. Brent crude futures climbed $2.37, or 2.69 per cent, to $90.47 a barrel, after touching an intraday high of $91.52, its strongest level since August 25.
US West Texas Intermediate crude also moved higher, gaining $2, or 2.4 per cent, to $85.40 a barrel. The latest rally came after US forces reportedly struck two Iranian launchers on Larak Island in the Strait of Hormuz, marking the first known US attacks on Iran since late July. Iran later retaliated by attacking two US air bases in Jordan, according to Iranian media.
The renewed fighting has put the Strait of Hormuz back at the centre of the global oil market. The strategic waterway previously handled about one-fifth of global oil supplies before the war began, making any prolonged disruption a major concern for traders, refiners and oil-importing countries. Shipping data showed visible commodity vessels using the strait fell to just five a day over the weekend, signalling a sharp slowdown in maritime traffic.
Markets are also watching developments around Iran’s energy infrastructure. US President Donald Trump said Iran’s Kharg Island energy hub was being “blown to smithereens”, although there was no evidence that the island had been attacked. Iran denied any attack on Kharg Island and said oil operations were continuing. Meanwhile, US Treasury Secretary Scott Bessent said Washington’s sanctions were intended to pressure Tehran back into negotiations.
Despite Monday’s recovery, crude prices remained on course for a modest monthly decline after oil fell more than four per cent last week. However, analysts and traders remain focused on whether the US-Iran confrontation will escalate further and disrupt crude production, exports and shipping. Any prolonged closure or restriction of the Strait of Hormuz could send global oil prices even higher, increasing pressure on economies already battling elevated energy costs.
source: punch
