Crude oil prices climbed above $90 per barrel at the opening of trading on Monday, extending their recent rally as escalating military conflict between the United States and Iran disrupted shipping through the Strait of Hormuz and heightened fears of a wider supply shock across the Middle East.
Data from Oilprice showed Brent crude rose 2.95 percent to $90.70 per barrel, while West Texas Intermediate (WTI) gained 2.63 percent to $84.66 per barrel, pushing both benchmarks to their highest levels since June 10.
The latest gains followed another night of US military strikes on Iranian targets, intensifying concerns that hostilities could further disrupt crude exports through the Strait of Hormuz, the world’s most important oil transit chokepoint.
Brent has gained more than $10 per barrel over recent trading sessions as geopolitical tensions intensified, reflecting a growing risk premium amid fading hopes of a diplomatic resolution between Washington and Tehran.
The Strait of Hormuz carries about 20 percent of global oil consumption and a significant share of the world’s liquefied natural gas (LNG) exports, making any prolonged disruption to traffic through the waterway a major concern for global energy markets.
The security situation deteriorated further on Monday after an empty Malta-flagged, Greece-managed oil products tanker, Kavomaleas, halted at anchor near Oman’s Musandam Peninsula as shipowners grew increasingly reluctant to transit the Strait in either direction.
According to shipping data, the tanker was chartered to load petroleum products from inside the Gulf but anchored after entering the region.
Vessel tracking showed that the Automatic Identification System (AIS) signal disappeared while transiting into the Gulf, suggesting it switched off its transponder as a security precaution.
The development reflects a growing trend among commercial vessels navigating the Strait in “dark mode” by disabling their tracking systems to reduce the risk of being detected as security conditions deteriorate.
Industry sources said tanker operators have largely suspended attempts to transit the Strait since hostilities resumed more than a week ago, following renewed Iranian attacks and harassment of commercial vessels.
Last week, Iran’s Islamic Revolutionary Guard Corps (IRGC) Navy said it intercepted four vessels attempting to pass through the Strait after switching off their transponders, claiming that two of the ships were involved in incidents that forced them to stop.
The disruption has caused tanker movements through Hormuz to fall to their lowest level in two months, fuelling fresh concerns over crude supply shortages at a time of peak summer demand.
Further heightening market anxiety, the United Kingdom Maritime Trade Operations (UKMTO) on Monday reported an incident involving a vessel approximately eight nautical miles northwest of Kumzar, Oman.
UKMTO said it had received information from a verified source that a vessel was on fire. However, the cause had not been established, and the authorities advised ships transiting the area to exercise caution and report any suspicious activity while investigations continue.
The latest escalation includes continued US strikes on Iranian military infrastructure and efforts to curb Tehran’s oil exports, raising fears that the conflict could spread beyond Hormuz to the Bab el-Mandeb Strait, another strategic shipping lane linking the Red Sea to global markets.
Analysts said the deteriorating security environment is reinforcing expectations of tighter near-term crude supplies, with the Brent futures curve remaining in backwardation. This market structure signals strong demand for immediate crude deliveries and expectations of constrained supply.
