Hormuz Tensions Send Oil Prices Soaring Above $90

Oil prices surged on Monday as tensions between the US and Iran escalated, sending Brent crude back above $90 per barrel. The price jump was triggered by US strikes on two Iranian launchers in the Strait of Hormuz, a critical waterway for global oil supplies.

The move has put geopolitical supply risk firmly back in control of the market, despite weaker demand forecasts and planned OPEC+ production increases that could limit further gains.

Brent crude futures rose by 2.5% to $90.31 per barrel, while US West Texas Intermediate gained 2.2% to $85.23. The rally was driven primarily by disrupted supply rather than strong consumption, according to analysts.

OPEC and the International Energy Agency remain far apart on their 2026 demand outlooks, with OPEC expecting modest global demand growth and the IEA forecasting a substantial contraction due to elevated fuel prices and disrupted trade.