Brent Rises as US and Iran Exchange Fire

Brent crude rose to $97.5 per barrel on Monday, a six-week high and nearly 40% above levels from before the outbreak of the war in Iran, to reflect expectations of prolonged periods of tight supply. Iran said it was close to agreeing on a tanker route through the Strait of Hormuz with Oman. The consistent hawkish rhetoric against the corridor by the US added to escalatory risks as the US and Iran continued to strike each others' military and commercial vessels. Energy Secretary Chris Wright said Washington would maintain its naval presence and blockade. A greater rebound to crude prices were prevented by major economies tapping on inventory to tame higher import turnover. The US SPR plunged to less than 290 million barrels, the lowest since 1982. On top of that, China significantly cut imports of crude oil and refinery runs in the country were cut by only 1.6 million barrels per day, indicating the cutback in crude consumption despite steady demand for refined product.

Brent crude oil fluctuated above $96 a barrel on Monday after surging 9.3% last week, as escalating tensions between Washington and Tehran raised fears of prolonged disruptions to energy shipments through the Strait of Hormuz. The US said it had struck three Iranian oil tankers over the weekend, destroying one, in retaliation for ballistic missile attacks on US Navy warships. Iran responded by threatening to establish a new restricted zone outside the strait, reportedly extending from the US Navy blockade line into parts of the Persian Gulf. Tehran also claimed to have targeted three tankers, although the reports could not be independently confirmed. US Energy Secretary Chris Wright said Washington would maintain its naval presence and blockade, aimed at limiting Iranian oil exports while supporting the safe passage of commercial vessels. Wright previously said that millions of barrels of crude were still moving through the Strait of Hormuz despite the escalating conflict.

Brent increased to 97.05 USD/Bbl, the highest since July 2026. Over the past 4 weeks, Brent Oil gained 10.63%, and in the last 12 months, it increased 46.99%.