Crude oil prices hold near six-week highs following Strait of Hormuz attacks
Oil prices hovered near six-week highs on Monday following escalating military exchanges between the United States and Iran that have severely disrupted commercial shipping through the Strait of Hormuz. Energy markets reacted as the regional conflict entered its seventh month, driving up crude benchmarks and intensifying concerns over Middle East supply chains.
U.S. West Texas Intermediate crude traded near a six-week high at $92.26 a barrel, up 78 cents, following a week that saw Brent crude rise roughly 8% and WTI climb nearly 10%. The latest price gains followed a weekend escalation that saw U.S. forces strike three Iranian oil tankers, including one off the coast of the Kharg Island export hub, according to the U.S. Central Command. Concurrently, Iran’s Islamic Revolutionary Guard Corps stated it targeted three tankers traveling through unauthorized routes in the Strait of Hormuz alongside three U.S.-linked vessels.
Maritime intelligence firm Marisks characterized the weekend clashes as a major escalation. Shipping data from analytics firm Kpler showed an average of 10 commodity ships transited the Strait of Hormuz per day over the preceding 10-day period, marking the lowest daily rate recorded since May. Transit numbers had dipped as low as six vessels per day earlier in the week.
Infrastructure vulnerabilities further rattled markets on Monday as Saudi Aramco’s Jazan oil refinery sustained an attack, with damage assessments currently underway, according to reports citing two people with knowledge of the matter. The conflict has carried a heavy human toll; Iran’s health minister reported 18 deaths and 108 injuries from previous U.S. strikes across Iran, while the Iranian Red Crescent confirmed four fatalities and 67 injuries at a wedding ceremony near the Strait of Hormuz coast. The semi-official Tasnim news agency also reported the deaths of three Iranian Army pilots.
Israeli Defence Minister Israel Katz warned that Israel would cripple Iranian military and civilian infrastructure, including energy facilities, if Tehran launched attacks against it, comments that Saxo Bank analyst Ole Hansen noted helped fuel the latest jump in oil prices.
