US Strikes Iranian Oil Tankers as Tensions Escalate

Oil prices rose in early Asian trade on Monday following another escalation in the U.S.-Iran conflict. WTI crude oil was trading at $92.14 per barrel, up 0.72% on the session, while Brent had risen 0.63% to trade at $96.89.

U.S. Central Command (Centcom) reported that it struck three Iranian oil tankers in response to the IRGC targeting two U.S. warships with ballistic missiles. The tankers hit were M/T Downy, M/T Stark 1, and M/T Kylo, and were struck near Kharg Island, Jask, and in the Gulf of Oman, respectively.

Iranian parliament speaker Mohammad Bagher Qalibaf warned that future retaliations from Iran will be 'faster, heavier and more painful' after the attacks. Mohsen Rezaei, secretary of Iran's Supreme National Security Council, suggested that Iran would soon announce a new restricted zone outside the Strait.

Independent tanker tracking suggests oil flows averaged about 5.04 million bpd over the latest 28-day period, while U.S. Energy Secretary Chris Wright claimed more than 9 million barrels per day of oil are being exported via water routes.