Brent crude oil prices moved higher on Monday after several days of military tensions between the United States and Iran continued to affect global energy markets. Although some oil exports have resumed, concerns about shipping disruptions in the Strait of Hormuz are still supporting prices.
Brent crude gained 0.8% to trade at $72.57 per barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude increased 1.3% to $70.11 per barrel during Monday’s trading session.
The recent conflict between the United States and Iran slowed shipping activity through the Strait of Hormuz. As a result, traders remain cautious because the waterway handles a significant share of the world’s oil exports.
According to analysts at ING Bank, the oil market still faces considerable risks. They said investors continue to watch whether oil shipments through the Strait of Hormuz can operate without further interruptions. Therefore, any new security incident could quickly influence crude prices.
Moreover, Brent crude experienced heavy losses last week. The benchmark fell 10.6% after oil exports through the Strait of Hormuz reached their highest level since the conflict began. However, shipping activity slowed again on Thursday after attacks targeted several vessels in the area, including an oil tanker linked to Qatar. Consequently, concerns over maritime security returned to the market.
Meanwhile, Saudi Arabia’s state-owned energy company, Saudi Aramco, resumed crude oil exports from the Ras Tanura terminal on Friday. The company restarted shipments after exports through the Gulf had remained suspended for nearly four months. This development improved supply expectations and helped stabilize market sentiment.
In addition, analysts at ANZ said physical oil transportation continues to face challenges because of vessel congestion and damage to parts of the region’s oil infrastructure. They believe the global oil supply chain may need several more months to fully recover. As a result, normal shipping conditions may not return until the end of the year if security risks continue.
Despite the recent recovery, oil traders remain focused on developments in the Middle East. Furthermore, any disruption to exports or shipping routes could create fresh volatility in global energy markets during the coming weeks.
