Brent Oil Prices Rise Above $90 as Middle East Tensions Grow

SINGAPORE: Oil prices climbed more than 2% on Monday, with Brent crude rising above $90 per barrel as growing US-Iran tensions affected oil shipments through the Strait of Hormuz.

Brent crude increased by $2.09, or 2.37%, to $90.19 per barrel, reaching its highest level since June 11 after gaining nearly 16% last week. US West Texas Intermediate (WTI) crude also rose by $1.71, or 2.07%, to $84.20 per barrel, its highest level since June 12.

Fighting in the Middle East continued over the weekend as the US carried out a ninth straight night of attacks on Iran. Kuwait and Bahrain also reported new Iranian strikes.

Analysts said oil prices are rising because there is no sign of the conflict easing. They warned that if the fighting continues, it could lead to more attacks across the Gulf region.

On Monday, Iran’s Islamic Revolutionary Guard Corps claimed that two oil tankers exploded and became stranded after using what it called an unsafe southern route through the Strait of Hormuz. It alleged the tankers had been encouraged by the US military to use the route. Reuters said it could not independently verify the claim.

Both the US and Iran have recently targeted shipping in the region. The US says it is enforcing a naval blockade on Iranian ports, while Iran says it is targeting ships that violate its navigation rules in the Strait of Hormuz.

The United Kingdom Maritime Trade Operations agency also reported that a vessel was on fire northwest of Oman’s Kumzar early on Monday.

Analysts said the coming days will show how much oil exports from the region are affected. They warned that the oil market may be underestimating the impact on global supplies.

Data showed that only four vessels passed through the Strait of Hormuz on Sunday, compared with eight the previous day. At least three oil product tankers and one Very Large Crude Carrier have entered the strait since Friday to load oil.