US-Iran Tensions Push Oil Prices Higher Amid Persistent Supply Disruptions
Oil prices continued to rise on Monday, driven by concerns over persistent supply disruptions in the Middle East. The latest escalation came after the US and Iran exchanged strikes targeting vessels sailing through the Strait of Hormuz.
The United States Central Command said that US forces targeted three Iranian oil tankers on Saturday, while Iran's Islamic Revolutionary Guard Corps Navy reported targeting three oil tankers and three other US vessels in different areas.
Data from Kpler showed that an average of 10 commodity vessels per day crossed the Strait of Hormuz over the past 10 days, the lowest level since May. Mohsen Rezaei, secretary of Iran's Supreme National Security Council, stated that an exclusion zone outside the Strait of Hormuz would be announced in the coming days.
OPEC+ kept its oil production policy for October unchanged at its meeting on Sunday, despite analysts predicting a prolonged confrontation and delayed recovery of Middle Eastern oil supplies. They anticipate exports to remain constrained through the remainder of 2026, with a gradual reopening expected in late Q4 2026.