Brent Crude Oil Rises Above $90 as US-Iran Conflict Disrupts Strait of Hormuz

The price of Brent crude oil rose above $90 per barrel on Monday after a series of military actions between the US and Iran disrupted shipping in the Strait of Hormuz.

US forces struck two Iranian launchers on Larak Island, which led to concerns about disruptions to oil shipments through the waterway. In response, Iran targeted US forces in Jordan with ballistic-missile attacks.

The Strait of Hormuz is a critical shipping route that handles an average of 20 million barrels per day of crude and petroleum products, equivalent to 25% of global seaborne oil trade.

However, the disruption is already reflected in shipping data. The US Energy Information Administration estimated that oil and petroleum liquids moving through Hormuz averaged 4.9 million barrels per day in the second quarter of 2026, down from 21.6 million barrels per day in the fourth quarter of 2025.

The price increase reflects renewed concern about military escalation further restricting tanker movements through the Gulf. Available alternatives cannot replace all Hormuz flows, with Saudi Arabia and the UAE collectively able to bypass the strait through alternative pipelines with only 4.7 million barrels per day of capacity.