Brent Oil Tops $90 Amid US-Iran Attacks
Brent crude climbed above $90 a barrel on Monday as escalating attacks involving the United States and Iran intensified concerns about energy supplies and shipping through the Strait of Hormuz.
Brent crude price crosses $90
Brent crude futures rose about 3% to $90.79 a barrel, crossing the $90 level for the first time since June. US West Texas Intermediate crude advanced roughly 2.7% to $84.68 a barrel.
The latest gains extended a sharp rally driven by fears that prolonged hostilities could restrict oil exports from the Gulf. Market conditions have also tightened as traders assess declining inventories and the possibility of further disruptions.
US-Iran conflict threatens oil shipments
The United States continued military strikes against Iran, while Tehran stepped up retaliatory action across the region. Iran has also threatened vessels attempting to use routes through the Strait of Hormuz that it considers unsafe or unauthorised.
Shipping activity through the waterway has fallen significantly. Only four vessels reportedly crossed the strait on Sunday, compared with eight a day earlier, highlighting the growing reluctance of operators to enter the high-risk area.
The Strait of Hormuz is a crucial passage for global energy supplies, carrying about one-fifth of the world’s traded oil. Any sustained interruption could reduce available supplies and raise transportation and insurance costs.
Middle East tensions raise supply fears
Iranian attacks were also reported by Kuwait and Bahrain as the conflict widened. Meanwhile, US restrictions on Iranian ports have added further uncertainty to regional crude shipments.
Energy markets are closely monitoring vessel movements, regional oil facilities and diplomatic developments. Analysts warn that prices could remain volatile if shipping traffic continues to decline or attacks damage production and export infrastructure.
A prolonged disruption could push crude prices higher and increase fuel and import costs for oil-dependent economies worldwide.
