Oil prices surged over three percent on Monday, pushing Brent crude past $90per barrel as intensifying military exchanges between the United States and Iran severely restricted commercial shipping through the strategic Strait of Hormuz. Brent crude futures climbed to 90.79 dollars while U.S. West Texas Intermediate rose to 84.68 dollars per barrel, reaching their highest levels since mid June and extending momentum after both benchmarks posted weekly gains exceeding fifteen percent.
The dramatic price surge follows a ninth consecutive night of American military airstrikes on Iranian infrastructure and retaliatory Iranian missile and drone strikes targeting U.S. regional allies, including Kuwait and Bahrain.
Hostilities have increasingly targeted regional energy infrastructure and maritime traffic, with Washington enforcing a naval blockade along the Iranian coastline and Tehran targeting commercial tankers navigating the crucial narrow waterway, which historically carries approximately one fifth of global crude supplies. Market analysts warn that with global oil inventories already running at multi year lows, the dual blockades and persistent strikes present severe risks of long term supply disruptions.
