ABNA24 - Oil prices climbed sharply on Monday as military escalation reignited between the United States and Iran following strikes by Washington, raising fears over disruptions to one of the world’s most critical energy corridors, with traders closely monitoring developments around the Strait of Hormuz.
Brent crude futures gained $3.10, or 4.08%, to reach $79.11 a barrel by 0325 GMT, while US West Texas Intermediate crude advanced $2.95, or 4.11%, to $74.36.
The rally followed another round of US military strikes against Iran on Sunday.
In response, Iran’s Islamic Revolution Guards [IRG] announced Monday that it had launched retaliatory strikes against US military bases in Kuwait and Bahrain, marking another escalation in the confrontation that has kept regional markets on edge.
The Strait of Hormuz once again emerged as the focal point of global energy concerns. While US President Donald Trump claimed on Sunday that the strategic waterway remained open to commercial navigation, Iran had earlier announced its closure after stating that a vessel entered the strait through an unauthorized route and was subsequently struck.
Before the joint US-“Israeli” attack on Iran that caused the war in February, roughly one-fifth of global oil and liquefied natural gas exports passed through the narrow maritime corridor, making any disruption a significant concern for international energy markets.
Shipping activity has already slowed considerably. According to vessel-tracking data from Kpler, only six ships passed through the strait on Sunday, the lowest daily total recorded in five weeks.
The decline has reinforced concerns that prolonged military exchanges could place additional strain on global energy supplies and maritime trade.
The latest military exchanges have also cast doubt over the future of the interim US-Iran agreement signed last month, which sought to reopen the Strait of Hormuz and establish a 60-day framework for negotiations aimed at ending hostilities.
Although the International Energy Agency reported on Friday that global oil production increased by 4.1 million barrels per day in June following the agreement, overall output remained 9.4 million barrels per day below levels recorded before the war.
Market analysts said the renewed escalation has complicated expectations that tensions would ease in the near term.
“Hopes of a relatively quick resolution to the recent skirmishes may be in doubt after tension escalated over the weekend,” ANZ analysts said in a market note.
Reuters reports that Tony Sycamore, an analyst at IG, said the relatively measured rise in oil prices suggested investors still viewed the latest confrontation as an escalation within an already fragile truce rather than the complete collapse of the ceasefire.
“How accurate that view is remains to be seen,” he said.
With uncertainty surrounding both military developments and maritime security, investors continue to assess whether the latest exchanges represent a temporary spike in tensions or the beginning of a broader regional escalation capable of further disrupting global energy markets.
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