Brent Crude Price Crosses $90 As Middle East Conflict Disrupts Oil Shipments

The Brent crude price rose $2.09, or 2.37%, to $90.19 a barrel by 0241 GMT on Monday, reaching its highest level since June 11. The latest rise extended a 15.9% weekly jump recorded last week, the strongest weekly gain since April.

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West Texas Intermediate crude futures also moved higher. The U.S. benchmark gained $1.71, or 2.07%, to $84.20 a barrel, its highest level since June 12. WTI crude rose 15.5% last week, marking its biggest weekly increase since early March.

The latest rally followed a further escalation in the U.S.-Iran conflict, with the United States carrying out a ninth consecutive night of attacks against Iran. Kuwait and Bahrain also reported fresh Iranian strikes over the weekend.

Strait Of Hormuz Disruptions Add To Supply Concerns

The conflict has increasingly affected shipping activity in and around the Strait of Hormuz, a major route for global oil trade. The waterway normally handles about one-fifth of the world’s oil shipments.

Iran’s Islamic Revolutionary Guard Corps said on Monday that two oil tankers had exploded and become immobilised after attempting to use what it described as an unsafe southern route through the strait. The allegation could not be independently verified.

The United States has said it is enforcing a naval blockade on Iranian ports, while Iran has stated that it is targeting vessels that violate its rules for navigating the Strait of Hormuz.

The United Kingdom Maritime Trade Operations agency also reported that a vessel was on fire northwest of Oman’s Kumzar.

Vessel Movements Through Key Oil Route Decline

Data from LSEG showed that four vessels passed through the Strait of Hormuz on Sunday, compared with eight the previous day. At least three oil product tankers and one Very Large Crude Carrier have entered the strait since Friday to load oil.

The decline in vessel movements has added to concerns over the potential impact on regional oil exports. With the Brent crude price already recording a sharp rise over the past two weeks, further disruption to shipping could keep attention focused on supply availability.

The movement in the crude oil price is also significant for major importing economies such as India, where higher oil costs can affect the import bill, inflation and the rupee.

Short-term movement of the Brent Crude Oil price is highly dependent upon the nature of the conflict and ability of ships to pass through the strait of Hormuz. For now, the route remains at the centre of concerns over the stability of global oil supplies.