Hormuz Tensions Send Crude Oil Prices Soaring Amid Prolonged Supply Disruption Fears

The recent strikes between US forces and Iran's Islamic Revolutionary Guard Corps (IRGC) in the Strait of Hormuz have led to a significant rise in crude oil prices. Brent crude futures climbed 52 cents, or 0.54%, to $96.80 a barrel by 2354 GMT on Monday, while U.S. West Texas Intermediate crude was at $92.14 a barrel, up 66 cents, or 0.72%. The US Central Command said it had struck three Iranian oil tankers on Saturday, including one off the coast of Kharg Island, near Iran's key oil export hub.

The IRGC claimed to have targeted six vessels on Saturday in retaliation for what it saw as unauthorized routes through the strait. Maritime intelligence firm Marisks described the attacks as a 'major escalation in the maritime conflict,' with commercial tankers now being used as instruments of reciprocal economic pressure.

Average daily transits through the Strait of Hormuz have dropped to 10 ships, the lowest since May, according to data from analytics firm Kpler. Iran is set to announce a restricted zone outside the strait in coming days, while OPEC+ kept its oil output policy unchanged for October at a meeting on Sunday.