Brent Crude Jumps Above $90 as US-Iran Conflict Disrupts Oil Shipments

The Brent crude oil price has surged above $90 per barrel as tensions between the United States and Iran escalate, disrupting oil shipments through the Strait of Hormuz.

According to Reuters, Brent crude futures rose by $2.09, or 2.37%, to $90.19 per barrel on Monday, marking its highest level since June 11. The price increase is attributed to the ongoing military hostilities between the two countries, which have raised concerns over global energy supplies.

The conflict has led to a significant reduction in oil shipments through the Strait of Hormuz, with only four vessels transiting the waterway on Sunday compared to eight the previous day. Analysts warn that if the escalation continues, it could lead to wide-scale attacks across the Gulf.

Amarpreet Singh, a Barclays analyst, said the coming days and weeks will provide a clearer picture of how renewed naval blockades affect oil exports from the region. However, he noted that oil markets may be too complacent about the potential fallout for inventories, which are already at their tightest level in five years.