Brent Crude Surges Amid US-Iran Tensions and Strait of Hormuz Disruptions

Global oil prices continued to rise on Monday, fueled by escalating US-Iran tensions and concerns over energy transport disruptions in the Strait of Hormuz. Brent crude futures jumped 1.47% to $97.25 a barrel, while WTI crude futures gained 1.09% to $92.23 a barrel.

The Strait of Hormuz has seen a significant drop in shipping activity over the past 10 days, with only an average of 10 commercial vessels passing through per day, the lowest level since May. This decline is attributed to frequent attacks on tankers and US military operations in the region.

Goldman Sachs warned that oil prices could surge to $120 a barrel if supply disruptions worsen, citing the risk of Middle East shipping disruptions. However, this scenario is not their baseline forecast, and they predict oil prices could drop back down to $80 a barrel if exports and shipping return to normal.