Global oil prices surged above $90 a barrel for the first time in more than a month on Monday as escalating military tensions between the United States and Iran heightened fears of disruptions to energy supplies through the Strait of Hormuz, one of the world’s most critical oil shipping routes.
Brent crude, the international benchmark, rose 2.5% to $90.30 a barrel during early Asian trading. The benchmark has gained more than 23% this month, putting it on track for its strongest monthly performance since March, when regional hostilities were at their peak. Monday’s rally also marked the first time Brent has traded above the $90 mark since June 11.
Military Escalation Fuels Supply Concerns
The latest spike in oil prices follows an intensifying exchange of military strikes between Washington and Tehran. The US confirmed additional military casualties over the weekend, with at least three American troops killed in attacks since Friday and possible remains of a fourth soldier recovered in Jordan.
Meanwhile, the US launched a ninth consecutive night of airstrikes targeting Iranian military installations, coastal surveillance facilities and communication networks. Washington said the operations were aimed at reducing Iran’s ability to threaten commercial shipping in the Strait of Hormuz, through which roughly a fifth of the world’s oil supply passes.
Tanker Traffic Hit
Adding to market anxiety, analysts at ANZ said tanker movements through the Strait of Hormuz had “collapsed” due to growing security concerns. They noted that increased US oil production had failed to compensate for the disruption in Gulf supplies, while Washington’s blockade of Iranian ports had further constrained global energy flows.
Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed that two oil tankers were “blown up and brought to a halt” while attempting to pass through what it described as an “unsafe” route south of the strait. The IRGC accused the US of provoking the incident and warned that no oil, gas or fertiliser shipments would be allowed through the waterway as long as American military operations continued in the region.
The IRGC also claimed responsibility for targeting US military aircraft, including C-17 transport planes and P-8 reconnaissance aircraft, at Jordan’s Aqaba airport.
oil Prices Markets Watch for Further Developments
Separately, UK maritime authorities reported that a vessel north of Oman had caught fire, although the cause remained unverified. Ships operating in the area were advised to exercise extreme caution.
Despite the sharp rise in oil prices, broader financial markets remained relatively stable. The US dollar was largely unchanged against major currencies, while yields on 10-year US Treasury bonds held steady. Equity futures in the US and Europe were flat, and Asian stock markets posted mixed performances as investors monitored developments in the Gulf.
US officials have reiterated that their primary objective is to ensure the continued safe flow of energy supplies through the Strait of Hormuz, a waterway that remains vital to global oil trade.
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