Brent Crude Opens 3% Higher

Oil prices have eased slightly but Brent remains above $100 per barrel, the highest level since July 2022, as concerns over a prolonged Strait of Hormuz closure eased, after a Pakistani oil tanker and two LPG vessels successfully crossed the chokepoint over the weekend. India is negotiating to move six more vessels, while the US has allowed Iranian tankers to transit, helping maintain global supply. Tanker traffic had plunged as Iran targeted commercial ships, but the country continues to export around 1.5 million barrels per day despite a strong US Navy presence. President Trump is urging nations relying on the Strait to help protect shipments, a vital route that previously handled 20% of global oil. The war has caused the largest oil supply disruption in history, with Fujairah hit again by a drone attack halting exports and Iran continuing attacks in the Persian Gulf, forcing flight suspensions in Dubai.

Oil prices have eased slightly but Brent remains above $100 per barrel, the highest level since July 2022, as supply risks in the Middle East stay elevated after a second attack in three days on Fujairah, a key UAE port just outside the Strait of Hormuz. Oil loading was suspended while damage is assessed following the latest strike, which came after a drone attack on Saturday that disrupted shipments from the country’s main export route. The US also said it struck military sites on Iran’s Kharg Island, a major oil export hub, though Iranian media reported shipments were continuing. President Donald Trump said the US is demanding other countries help defend the Strait of Hormuz, where traffic has slowed sharply since the conflict began. Some vessels have started attempting the passage while global authorities move to stabilize supply, with the IEA coordinating a record 400 million barrel reserve release as traders wait for clearer evidence of actual supply losses.

Brent crude futures rose to around $106 per barrel on Monday, the highest level since July 2022, following US strikes on military sites on Kharg Island as the Middle East conflict entered its third week. US President Donald Trump also warned that Iran’s energy infrastructure on the island, which handles roughly 90% of the country’s oil exports, could be targeted if Tehran interferes with transit through the Strait of Hormuz. The narrow waterway linking the Persian Gulf with global markets has remained effectively shut since the conflict began, with Iran’s new supreme leader pledging last week to keep the strait closed if hostilities continue. Meanwhile, traders assessed reports that the US will soon announce a coalition of countries to escort ships through the waterway. Highlighting pressure on global supply, the IEA said Sunday that oil from last week’s record 400-million-barrel reserve release will be made available immediately in Asia.