Brent Crude Surges Above $90 as Escalating US-Iran Conflict Raises Global Supply Concerns

SINGAPORE: Global oil prices climbed sharply on Monday, with Brent crude futures rising above $90 per barrel for the first time in over a month as escalating military tensions between the United States and Iran heightened fears of prolonged disruptions to energy supplies from the Middle East.

Brent crude futures gained approximately 3% to $90.79 per barrel, while U.S. West Texas Intermediate (WTI) crude advanced 2.65% to $84.68 per barrel, extending last week’s strong rally. The gains reflected growing market concerns over supply risks stemming from the deepening conflict in the Gulf region.

The surge followed a ninth consecutive day of U.S. military strikes on Iranian targets and Tehran’s continued actions against vessels it says violate its navigation regulations. The conflict has significantly disrupted shipping through the Strait of Hormuz, a strategic waterway that carries around 20% of global oil trade, intensifying fears of supply shortages.

Shipping data indicated a sharp decline in tanker movements through the Strait, with only four vessels reportedly transiting the passage on Sunday compared with eight the previous day. The United States has also enforced a naval blockade on Iranian ports, further complicating crude exports and maritime logistics in the region.

Energy analysts warned that oil markets may still be underestimating the potential impact of an extended disruption, noting that global crude inventories are already at their tightest levels in five years. They cautioned that sustained restrictions on shipping or further escalation could tighten supplies further and place additional upward pressure on energy prices.

The renewed volatility in oil markets has raised broader concerns over global inflation, transportation costs, and energy security, with governments and investors closely monitoring developments in one of the world’s most strategically important oil-producing regions.