The Kabul Tribune (KT) — Reuters reported that Brent crude oil prices climbed above $90 a barrel on Monday as escalating military hostilities between the United States and Iran disrupted oil shipments through the Strait of Hormuz, raising concerns over global energy supplies.
Brent crude futures rose $2.09, or 2.37%, to $90.19 per barrel by 0241 GMT, their highest level since June 11, after surging 15.9% last week, the largest weekly gain since April. Meanwhile, U.S. West Texas Intermediate (WTI) crude gained $1.71, or 2.07%, to $84.20 per barrel, its highest level since June 12, following a 15.5% increase last week, the biggest weekly advance since early March.
According to Reuters, the conflict intensified over the weekend as the United States carried out a ninth consecutive night of strikes against Iran, while U.S. allies Kuwait and Bahrain reported additional Iranian attacks.
"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 research note.
"The U.S. and Iran continue to exchange strikes, which are proving to be deadly for both sides. If this escalation goes unchecked, we could return to an environment of wide-scale attacks across the Gulf," the analysts added.
Iran's Islamic Revolutionary Guard Corps (IRGC) said on Monday that two oil tankers exploded and became disabled after attempting to sail through what it described as an unsafe southern route in the Strait of Hormuz. The IRGC alleged the vessels had been encouraged by the U.S. military to use the passage, although Reuters said it could not independently verify the claim.
In recent days, both Washington and Tehran have increasingly targeted maritime traffic. The United States says it is enforcing a naval blockade on Iranian ports, while Iran says it is targeting vessels that violate its navigation rules in the Strait of Hormuz, a strategic waterway that normally carries about 20% of global oil trade.
The United Kingdom Maritime Trade Operations (UKMTO) also reported early Monday that a vessel was on fire northwest of Kumzar, Oman.
Barclays analyst Amarpreet Singh said the coming days and weeks would provide a clearer picture of how renewed naval blockades affect oil exports from the region.
"As things stand, we think oil markets are still too complacent about the potential fallout for inventories, which, unlike at the beginning of the war, are at the tightest of the past five years," Singh said.
According to data from LSEG, only four vessels transited the Strait of Hormuz on Sunday, compared with eight the previous day. The data also showed that at least three oil product tankers and one Very Large Crude Carrier (VLCC) have entered the strait since Friday to load crude oil, underscoring continued but reduced shipping activity amid rising regional tensions.
