Brent crude oil prices climbed above $90 per barrel on Monday. Rising tensions in the Middle East increased concerns about global energy supplies. Investors also watched developments around the Strait of Hormuz.
Brent crude gained $2.69, or 3.05%, to reach $90.79 per barrel in futures trading. The price reached its highest level since June 11. Last week, Brent advanced 15.9%. It recorded its strongest weekly gain since April.
West Texas Intermediate (WTI) also moved higher. US crude rose $2.19, or 2.65%, to $84.68 per barrel. That marked its highest level since June 12.
Oil prices increased after military tensions between the United States and Iran intensified. Reports said the United States continued operations against Iranian targets. Iran also increased pressure on US allies, including Kuwait and Bahrain.
The conflict disrupted shipping activity across the Gulf. The United States tightened restrictions on Iranian ports. Meanwhile, Iran warned that it could target ships violating its navigation rules in the Strait of Hormuz.
The UK Maritime Trade Operations (UKMTO) agency also reported a fire aboard a vessel near Kumzar, Oman. The incident raised fresh concerns about maritime security.
The Strait of Hormuz remains one of the world’s busiest oil routes. A large share of global crude exports passes through the waterway every day. Any disruption can quickly affect oil markets and fuel prices.
Barclays analyst Amarpreet Singh said the coming days will reveal the impact of shipping restrictions. He added that markets have not fully priced in declining global oil inventories. Stockpiles have already fallen to their lowest level in five years.
Shipping traffic through the Strait of Hormuz has slowed. London Stock Exchange data showed that four vessels crossed the strait on Sunday. The previous day, eight vessels made the journey. Since Friday, three petroleum tankers and one very large crude carrier entered the waterway to load oil.
Analysts expect Brent crude oil prices to remain volatile. Geopolitical tensions and shipping risks will likely continue driving market movements.
