Oil Prices Surge Amid US-Iran Strait of Hormuz Standoff

Oil prices continued to rise on Monday, driven by concerns over supply disruptions in the Middle East. The Strait of Hormuz, a crucial waterway for oil shipments, has seen increased tensions between the US and Iran.

The two countries have been involved in tit-for-tat strikes on vessels sailing through the strait, with the US hitting three Iranian oil tankers on Saturday. The attacks came after a week in which Brent crude futures rose 7.8% and WTI gained nearly 10%.

U.S. Central Command confirmed that the US struck three Iranian oil tankers, including one off the coast of Kharg Island near Iran's key oil export hub. The navy of Iran's Islamic Revolutionary Guard Corps claimed it targeted three oil tankers traveling through unauthorized routes in the Strait of Hormuz as well as three additional U.S. vessels.

Maritime intelligence firm Marisks described the Saturday attacks as a 'major escalation in the maritime conflict.' They noted that commercial tankers are now being deliberately used as instruments of reciprocal economic pressure, substantially weakening the distinction between military confrontation and commercial shipping.