Oil extends advance as US-Iran escalation revives Hormuz risks
Several current and former US and Iranian officials have said they expect the conflict to drag on for months
Oil prices surged on Monday as growing tensions between the United States and Iran raised fears of potential disruptions to energy supplies through the strategically vital Strait of Hormuz. West Texas Intermediate climbed above $86, up 2.8 percent from the previous session, while Brent crude settled near $90. The recent escalation began when American forces attacked an island in Hormuz, sparking Iranian retaliation against the UAE and Jordan, the first exchange of fire in roughly a month.
Despite the fighting, crude production continued in the Persian Gulf, with UAE, Saudi Arabia, Kuwait, and Iraq exporting barrels, though ships navigating the waterway remain vulnerable to attacks. A tanker was reportedly hit by three unidentified projectiles while passing through Hormuz near Oman, highlighting the risks faced by maritime traffic in the region.
Iran struck American air bases in Jordan, though local reports stated that the missiles were intercepted and did not cause any damage. President Donald Trump stated that the US would respond to attacks on American forces, potentially igniting a cycle of military escalation. Market strategists, including Bart Melek of TD Securities, anticipate crude prices to rise further, as there is no indication that normal transit through Hormuz will resume anytime soon.
Analysts expect the conflict to persist for months, with refined-product prices experiencing a sharper increase due to supply tightening, particularly in diesel.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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