Iranian Missile Barrage Sends Crude Oil Prices Soaring to Near $85

Crude oil prices surged on Monday after Iran's Islamic Revolutionary Guard Corps (IRGC) claimed that a supertanker caught fire in the Strait of Hormuz after hitting two naval mines. The incident sparked a sharp escalation, with Iran launching a coordinated barrage of ballistic and anti-ship cruise missiles from multiple locations across the country.

The IRGC stated that the vessel was attempting to pass through the strait illegally, adding a stern warning that all maritime traffic must strictly comply with Iranian rules for passage through the area. The US had previously struck Iranian mine-laying positions in response to an earlier US strike on Larak Island.

West Texas Intermediate (WTI) oil prices rose to near $84.50 per barrel, maintaining a constructive bullish bias as price holds above both the short-term nine-period Exponential Moving Average (EMA) and the medium-term 50-period EMA. The alignment of price above these averages suggests a supportive trend structure.

Brown Brothers Harriman cautioned that despite recent strength in Brent, upside pressure on crude oil prices appears limited due to improving regional supply dynamics. Goldman Sachs estimates that oil exports from the Persian Gulf have recovered to around two-thirds of pre-war levels as more vessels transit the Strait of Hormuz.