WTI Oil Prices Soar Amid Tensions in the Strait of Hormuz

West Texas Intermediate (WTI) oil prices surged to near $84.50 per barrel on Monday, following claims by Iran's Islamic Revolutionary Guard Corps (IRGC) that a supertanker caught fire in the Strait of Hormuz after hitting two naval mines.

The IRGC stated the vessel was attempting to pass through the strait illegally and warned all maritime traffic must comply with Iranian rules for passage.

Iran launched a coordinated barrage of ballistic and anti-ship cruise missiles from multiple locations, targeting positions in the Strait of Hormuz in response to a US strike on Iranian launcher facilities at Larak Island.

Brown Brothers Harriman cautioned that upside pressure on crude oil prices appears limited due to improving regional supply dynamics, with oil exports from the Persian Gulf recovering to around two-thirds of pre-war levels.