US-Iran Conflict Continues to Drive Up Oil Prices Amid Strait of Hormuz Disruptions

Oil prices rose on Monday as fresh strikes between the US and Iran targeting vessels in and around the Strait of Hormuz heightened concerns over prolonged disruptions to Middle East oil supplies.

Brent crude futures increased by 52 cents, or 0.54%, to $96.80 a barrel, while US West Texas Intermediate (WTI) crude gained 66 cents, or 0.72%, to $92.14 a barrel.

The price surge comes after the US and Iran resumed attacks that disrupted oil flows through the Strait of Hormuz, a key shipping route through which about a fifth of the world's oil supply has traditionally transited.

OPEC+ kept its oil output policy unchanged for October, but this may not be enough to counteract the impact of the ongoing conflict. The group needs to agree on new production quotas before deciding its next steps on output.