Brent Crude Heads for Nearly 50% Monthly Gain

Brent crude oil futures rose toward $108 per barrel amid rising tensions in the Gulf. Iran attacked the Kuwaiti oil tanker Al-Salmi near Dubai, damaging its hull, signaling willingness to escalate strikes on energy infrastructure. Tehran has repeatedly targeted ships across the Gulf since the conflict began. Meanwhile, reports indicate President Donald Trump may end US military operations in Iran even if the Strait of Hormuz stays closed, focusing instead on degrading Iran’s navy and missile capabilities. Trump has oscillated between threats of escalation, including potential strikes on Iranian power plants and oil facilities, and suggesting a near end to hostilities. Brent crude has jumped over 50% this month, its largest gain since May 2020, with markets jittery over US troop movements, potential ground action, and regional strikes, including Israeli attacks on Tehran and Saudi interceptions of drones.

Brent crude futures retreated to around $107 per barrel on Tuesday, reversing gains from earlier in the session following reports that President Donald Trump told aides he is willing to end the US military campaign against Iran even if the Strait of Hormuz remains largely closed, potentially strengthening Tehran’s control over the strategic waterway. Meanwhile, Iran struck a Kuwaiti oil tanker near a Dubai port, underscoring heightened risks for shipping in the Persian Gulf. Iran-backed Houthis in Yemen also entered the conflict by targeting Israel over the weekend, while Tehran is reportedly preparing to disrupt Red Sea shipping. These developments could further tighten energy flows from the Middle East, as two of the world’s main trade and energy corridors face potential disruption. The international oil benchmark remains on track for a record monthly surge of over 60%.

Brent crude futures eased toward $106 per barrel on Tuesday, but were still on track for a record monthly surge of over 60% as the Middle East conflict showed no signs of abating and continued to disrupt global energy markets. In the latest developments, Iran struck a Kuwaiti oil tanker near a Dubai port, highlighting heightened risks for shipping in the Persian Gulf. President Donald Trump also threatened strikes on Iran’s electricity plants, oil facilities, and desalination infrastructure if the Strait of Hormuz is not reopened, overshadowing his earlier indications that a deal with Iran could be near. Additionally, Iran-backed Houthis in Yemen entered the conflict by targeting Israel over the weekend, while Tehran is reportedly planning to disrupt Red Sea shipping. Such developments risk further tightening energy flows from the Middle East, as two of the main strategic waterways in the world for trade and energy supplies could potentially be cut off.