Business Desk — International crude oil prices broke past the $90 per barrel threshold on Monday, reaching their highest levels in over a month. The sharp spike comes as escalating military conflicts between the United States and Iran spark deep concerns over potential shipping disruptions through the critical Strait of Hormuz.
In early Asian trading on Monday, Brent crude rose by 2.37 percent to reach $90.19 per barrel, marking its highest price since June 11. This surge follows a nearly 16 percent rise last week—the largest weekly gain recorded for Brent crude since April.
Similarly, U.S. West Texas Intermediate (WTI) crude jumped 2.7 percent to $84.20 per barrel, also hitting a multi-week high.
Escalating Conflicts in the Gulf Region
The latest market rally follows a dramatic escalation over the weekend, when the U.S. conducted its ninth consecutive day of strikes against targets in Iran. Concurrently, reports of additional Iranian strikes emerged from Kuwait and Bahrain, fueling fears of a broader regional conflict in the Gulf.
Market analysts at ING highlighted the volatile situation, noting that there are no immediate signs of de-escalation as both sides continue fatal exchanges. Continued hostilities raise the risk of a full-scale confrontation that could drag the broader Gulf region into instability.
Adding to supply anxiety, Iran’s Islamic Revolutionary Guard Corps (IRGC) claimed that explosions rendered two oil tankers operational-incapable while navigating the southern Strait of Hormuz, accusing the vessels of using “unsafe” routes encouraged by the U.S. These claims have not been independently verified.
Strait of Hormuz Bottleneck Tightens
Navigational friction near the vital maritime transit choke point has intensified rapidly. While Washington maintains that it is enforcing a naval blockade on Iranian ports, Tehran asserts it is targeting only those vessels that violate its transit protocols within the strait.
The United Kingdom Maritime Trade Operations (UKMTO) reported an incident involving a ship fire northwest of Kumzar, Oman, though the precise cause remains unconfirmed.
Data from LSEG reveals a sharp drop in maritime traffic: only four vessels traversed the Strait of Hormuz on Sunday, down from eight the previous day. Since Friday, at least three refined product tankers and one Very Large Crude Carrier (VLCC) entered the strait to load oil shipments despite heightened risks.
Market Outlook
Energy analysts warn that if the Middle East crisis remains prolonged, physical oil deliveries could face severe blockages. Such disruptions are expected to maintain upward pressure on global crude prices, triggering broader economic inflation and volatility across global markets.