Global oil prices climbed to their highest levels in more than a month on Monday as escalating military tensions between the United States and Iran heightened concerns over potential disruptions to energy shipments through the Strait of Hormuz, one of the world’s most critical oil transit routes.
During trading, Brent crude rose $2.09 to $90.19 per barrel, its highest level since June 11, while West Texas Intermediate (WTI) gained $1.71 to $84.20 per barrel, the strongest level since June 12.
Market analysts said growing geopolitical tensions across the Persian Gulf have increased uncertainty over global oil supplies. Both Brent and WTI posted gains of more than 15 percent last week, reflecting mounting concerns over the stability of energy markets.
International media reports said the United States and Iran have exchanged military strikes for several consecutive days, while several U.S.-allied Gulf states have also reported new attacks, further raising fears of a broader regional conflict.
Analysts at ING warned that continued military escalation between Washington and Tehran could push the region toward a wider confrontation. They said prolonged instability could have a significant impact on global energy supply chains if tensions are not quickly de-escalated.
Amarpreet Singh, an analyst at Barclays, noted that although global crude inventories are near multi-year lows, current market prices may not yet fully reflect the risks of a potential supply disruption.
Meanwhile, Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed that two oil tankers were damaged by explosions in the southern part of the Strait of Hormuz. Reuters said it was unable to independently verify the claim.
Separately, the United Kingdom Maritime Trade Operations (UKMTO) reported a fire aboard a vessel near the coast of Oman. According to data from the London Stock Exchange Group (LSEG), vessel traffic through the Strait of Hormuz—one of the world’s most important maritime energy corridors—fell by nearly 50 percent over a 24-hour period, intensifying concerns over global oil supplies.
Analysts said that unless tensions in the Middle East ease in the near term, volatility in international energy markets is likely to persist, with oil prices expected to remain under upward pressure.
Source: Reuters.