Global oil prices climbed above $90 per barrel on Monday as escalating military tensions between the United States and Iran raised fresh concerns over disruptions to oil shipments through the Strait of Hormuz, one of the world’s most critical energy transit routes.
Brent crude rose 2.37% to $90.19 per barrel, its highest level since June 11, after posting a massive 15.9% weekly gain—the strongest since April. Meanwhile, US West Texas Intermediate (WTI) crude climbed 2.07% to $84.20 per barrel, marking its highest level since June 12 after surging 15.5% last week.
The rally comes as the Middle East conflict intensified over the weekend. The United States reportedly carried out a ninth consecutive night of strikes against Iran, while regional allies Kuwait and Bahrain also reported fresh Iranian attacks.
Analysts at ING warned that continued escalation could trigger wider instability across the Gulf, increasing the risk of major disruptions to global energy supplies.
Adding to market jitters, Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed that two oil tankers exploded and became disabled while attempting to pass through what it called an unsafe southern route in the Strait of Hormuz. The IRGC alleged the vessels had been encouraged by the US military to use the route, although the claims could not be independently verified.
The Strait of Hormuz is a strategic chokepoint through which around 20% of the world’s oil supply passes. Recent hostilities have seen both Washington and Tehran target maritime activity, with the US enforcing a naval blockade on Iranian ports while Iran has threatened vessels it says violate its navigation rules.
According to shipping data, only four vessels transited the Strait of Hormuz on Sunday, down from eight a day earlier, highlighting growing concerns among ship operators over the deteriorating security situation.