Oil prices surged on Monday, with Brent crude climbing above the $90 a barrel mark for the first time in weeks, as rising military tensions between the United States and Iran disrupted shipping through the vital Strait of Hormuz.
Brent crude rose 3.1 percent to $90.87 a barrel in early trading after briefly hitting its highest level since June 11. US West Texas Intermediate also gained nearly 3 percent to $84.84, reaching its strongest level since June 12.
The latest rally follows a dramatic week for energy markets. Brent jumped almost 16 percent last week, marking its biggest weekly gain since April, while US crude recorded its strongest weekly rise since early March.
The sharp gains come as fighting in the Middle East intensifies. The US carried out a ninth straight night of strikes on Iran over the weekend, while Kuwait and Bahrain also reported fresh Iranian attacks.
Adding to market jitters, Iran’s Islamic Revolutionary Guard Corps claimed two oil tankers were damaged and left stranded after attempting to pass through what it described as an unsafe route in the Strait of Hormuz. Reuters could not independently verify the claim.
The waterway is one of the world’s busiest energy routes, handling about one fifth of global oil shipments. Both Washington and Tehran have recently targeted maritime traffic, raising concerns that the conflict could further disrupt global supplies.
Shipping activity has already slowed. Data from LSEG showed only four vessels crossed the Strait on Sunday, compared with eight a day earlier, although several oil tankers have continued entering the passage to load crude.
Analysts say the market remains focused on whether the conflict will lead to lasting supply disruptions.
ING said Brent’s move above $90 reflects fears that violence in the Gulf could spread further. Barclays also warned that oil markets may be underestimating the impact on global inventories, which are already at their tightest levels in five years.
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