Brent Crude Crosses $90 As US-Iran Conflict Disrupts Gulf Shipping

Brent crude jumped 2% to top $90 a barrel on Monday as escalating military exchanges between the United States and Iran choked off shipping routes through the Strait of Hormuz. Prices touched their highest level since June 11, building on a 15.9% weekly gain, the sharpest since April.

Tensions Spill Into The Strait Of Hormuz

US West Texas Intermediate crude also climbed, reaching $84.20 a barrel, its strongest mark since June 12. The rally follows a ninth consecutive night of US strikes on Iran, with Kuwait and Bahrain also reporting Iranian attacks over the weekend.

Iran’s Revolutionary Guard Corps said two oil tankers exploded after attempting what it called an unsafe southern route through the strait, though the claim has not been independently verified. Both sides have increasingly targeted shipping, with Washington enforcing a naval blockade on Iranian ports and Tehran policing vessels it says violate its navigation rules.

Traffic Through The Strait Slows

Ship movement through the corridor, which normally carries a fifth of global oil trade, has thinned out, with only four vessels crossing on Sunday compared to eight the day before. Analysts warn that oil markets may still be underestimating how tight global inventories could get if the standoff continues.