Brent Soars Near $97 as US-Iran Tensions Escalate
Oil prices continued to rise on Monday as tensions between the United States and Iran escalated, threatening supply disruptions through the Strait of Hormuz. Brent crude futures increased by 0.54% to $96.80 a barrel, while U.S. West Texas Intermediate crude gained 0.7% to $92.12 a barrel.
The Strait of Hormuz is one of the world's most important oil shipping routes, with roughly a fifth of global oil supplies passing through it. Concerns over its accessibility have become a key driver of crude prices, with markets pricing in the possibility that supply disruptions could persist for an extended period.
The latest escalation came after U.S. forces struck three Iranian oil tankers on Saturday, including one near Kharg Island, an important Iranian oil export hub. Iran's Islamic Revolutionary Guard Corps responded by targeting three oil tankers traveling through what it described as unauthorized routes in the Strait of Hormuz, along with three additional U.S. vessels in other areas.
The attacks have raised concerns that commercial shipping could increasingly become part of the confrontation. Maritime intelligence firm Marisks described the weekend attacks as a major escalation, saying commercial tankers were being used as instruments of economic pressure.