Brent crude rises above $90 a barrel as fresh US-Iran tensions in the Strait of Hormuz raise concerns over oil supply disruptions
Oil prices surged more than 2 per cent on Monday after US forces struck two Iranian launchers on Larak Island in the Strait of Hormuz, raising fresh concerns about escalating tensions in the Gulf and potential disruptions to global oil supplies.
Brent crude futures climbed $2.22, or 2.52 per cent, to $90.32 a barrel by 2202 GMT, moving back above the $90 threshold. US West Texas Intermediate (WTI) crude rose $2.01, or 2.41%, to $85.41 a barrel.
The strikes on Sunday marked the first known US attacks on the Gulf nation since late July, according to Reuters. Larak Island lies in the Strait of Hormuz, a critical global oil shipping route.
The latest military action has heightened market concerns that further escalation between the United States and Iran could threaten energy infrastructure or disrupt shipping through the strategic waterway.
The Strait of Hormuz is particularly important for global energy markets because a significant share of the world’s oil and gas shipments passes through the narrow waterway.
Investors are now closely watching developments in the region for signs of a broader escalation. Any sustained disruption to oil flows could put additional upward pressure on crude prices and increase concerns about inflation across major economies.
More from BusinessThe move higher in oil prices comes amid heightened geopolitical risks in the West Asia, with traders weighing the potential impact of US-Iran tensions on global energy supplies.
