Oil Prices Surge, Brent Tops $90 on Heightened Supply Risk
Brent crude traded above $90 a barrel on Monday, extending sharp gains after the weekend escalation in the conflict between the US and Iran heightened concerns over oil shipments through the Strait of Hormuz.
International benchmark Brent crude traded at $90.56 per barrel, up 2.8% from the previous close of $88.1. US benchmark West Texas Intermediate (WTI) traded at $83.79 per barrel, up 2.5% from $81.78 in the previous session.
Oil prices started the week with strong gains as renewed military exchanges between Washington and Tehran raised fears of supply disruptions in the Strait of Hormuz, through which around one-fifth of global oil trade passes.
Brent climbed above $90 a barrel for the first time since mid-June, while WTI touched its highest level in about a month. An area near the districts of Sirik and Hajiabad in Hormozgan province of Iran was targeted early Sunday by the US, according to Mehr News and Tasnim News.
The attack in Sirik came at 1.30 am local time; the one against the Hajiabad district came at 2.10 am, said reports. They said no casualties were reported and that residential and commercial infrastructure were not damaged in the attacks.
Washington announced that it launched a new wave of airstrikes Saturday against Iran on orders from the commander-in-chief, the US military’s Central Command (CENTCOM) wrote on the American social media platform X.
Meanwhile, Iran’s Atomic Energy Organisation said on Sunday that US strikes targeted the Darkhovin nuclear power plant, which is still under construction in the country’s southwest.
It did not reveal further details about possible damage from the attack.
“The US attack on the Darkhovin power plant, which is under construction, constitutes a dangerous assault on Iran’s peaceful infrastructure,” Deputy Foreign Minister Kazem Gharibabadi said in a statement on the US social media platform X.
“Iran strongly condemns this aggression and will take appropriate action to defend its national interests and security,” Gharibabadi added.
Iran also stepped up retaliatory attacks across the region. Kuwait said early Monday that its air defenses were intercepting “hostile” drones while Bahrain activated warning sirens and urged citizens and residents to seek shelter.
Meanwhile, US President Donald Trump said on Sunday that US forces struck Iran very hard in honour of the American service members who were recently killed in the Middle East, while reiterating that Iran cannot have nuclear weapons.
Analysts said oil exports from the region could decline further in the coming days, while markets have yet to fully price in supply risks associated with already tight global inventories. They also pointed to lower shipping traffic through the Strait of Hormuz as a sign that energy flows are slowing.
