Oil Prices Soar as US-Iran Tensions Escalate Through Strait of Hormuz
Oil prices continued to rise on Monday as tensions between the US and Iran escalated. The Strait of Hormuz, through which a fifth of the world's oil supply is transported, has been a key battleground in this conflict.
The US has struck three Iranian oil tankers, including one off the coast of Kharg Island near Iran's key oil export hub. In response, the Iranian navy targeted three oil tankers that were traveling through unauthorized routes in the Strait of Hormuz, as well as three additional US vessels in other areas.
The Saturday attacks have been described as a 'major escalation' in the maritime conflict by maritime intelligence firm Marisks. Commercial tankers are now being deliberately used as instruments of reciprocal economic pressure, substantially weakening the previous distinction between military confrontation and commercial shipping.
Brent crude futures climbed 52 cents to $96.80 a barrel, while US West Texas Intermediate crude was at $92.14 a barrel, up 66 cents or 0.72%. Brent rose 7.8% last week while WTI gained nearly 10% after the attacks.
OPEC+ kept its oil output policy unchanged for October in a meeting on Sunday. Analysts predict that a prolonged standoff between the US and Iran will delay the path to full recovery of Middle East supply, with exports remaining constrained through 2026 before a gradual reopening late in Q4 2026.