Oil prices extended their gains on Monday as fresh US-Iran attacks on oil tankers and other vessels raised fears of a longer disruption to Middle Eastern supplies.
Brent crude futures rose 79 cents, or 0.82 percent, to $97.07 a barrel by 0512 GMT, while US West Texas Intermediate (WTI) gained 80 cents, or 0.87 percent, to $92.28 a barrel, according to the Express Tribune.
The latest rise follows a sharp rally last week. Brent gained 7.8 percent, while WTI climbed nearly 10 percent as renewed fighting between the US and Iran reduced oil flows through the Strait of Hormuz.
The waterway is a key global oil route, with around a fifth of the world’s oil supply passing through it under normal conditions. Any prolonged disruption could put further pressure on global prices.
US forces struck three Iranian oil tankers on Saturday, according to US Central Command. One of the vessels was hit near Kharg Island, a major Iranian oil export hub.
Iran’s Islamic Revolutionary Guard Corps said it had also targeted three oil tankers using what it called unauthorised routes through the Strait of Hormuz, along with three US vessels in other areas.
Maritime intelligence firm Marisk described the attacks as a major escalation in the conflict at sea. It said commercial tankers were increasingly becoming part of the economic pressure between the two countries.
Shipping through Hormuz has already fallen sharply. Data from analytics firm Kpler showed that an average of just 10 commodity ships crossed the strait each day over the past 10 days, the lowest level since May.
“If tanker traffic begins to slow materially, the market could price in a much larger supply shock,” said Priyanka Sachdeva, head of market insights at Phillip Nova.
Iran is also preparing to announce a restricted zone outside the Strait of Hormuz in the coming days, according to state media.
Meanwhile, OPEC+ kept its oil output policy unchanged for October after its meeting on Sunday.
ANZ analysts said a prolonged standoff between the US and Iran, combined with limited military action, was the most likely outcome. They expect Middle Eastern oil exports to remain restricted through the rest of 2026, with a gradual recovery late in the fourth quarter.
A return to pre-war oil flows is not expected until late in the first quarter or early second quarter of 2027, they said.
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