SINGAPORE — Oil prices climbed above $90 a barrel on Monday after escalating military conflict between the United States and Iran disrupted shipping through the Strait of Hormuz, raising concerns over global crude supplies and adding to volatility across energy markets.
Brent crude futures rose more than 3% to trade above $90 a barrel, reaching their highest level since mid-June, while U.S. West Texas Intermediate crude climbed to about $85 a barrel. Both benchmarks extended sharp gains from the previous week as traders priced in heightened geopolitical risk and the prospect of prolonged supply disruptions.
The latest advance followed an expansion of hostilities over the weekend, with the United States carrying out additional strikes on Iranian targets and regional authorities reporting further Iranian attacks. The conflict has affected commercial shipping through the Strait of Hormuz, one of the world's most important energy transit routes, through which roughly one-fifth of global oil consumption normally passes.
Shipping data and market analysts said tanker traffic through the waterway remained significantly below normal levels after security concerns prompted some operators to delay or reroute voyages. The reduced flow has increased fears of tighter crude supplies despite no confirmed long-term closure of the strait.
Market participants said the latest price surge reflected a growing geopolitical risk premium rather than an immediate physical shortage of oil. Analysts noted that any sustained disruption to exports from Gulf producers could tighten global supplies further and complicate efforts by major consuming economies to contain inflation.
Energy traders are also monitoring whether members of the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, or other major producers respond if supply disruptions worsen. No coordinated production response had been announced as of Monday.
Financial markets reacted cautiously, with investors weighing the implications of higher energy costs for global economic growth. Countries heavily dependent on crude imports, particularly in Asia, are considered especially vulnerable to sustained increases in oil prices if shipping disruptions continue.
Officials in the United States and Iran continued to exchange accusations over responsibility for the escalating conflict, while governments across the region urged efforts to safeguard commercial navigation. As of Monday, shipping through the Strait of Hormuz remained constrained, and oil markets continued to track military developments for signs of further disruption to global energy supplies.
