Oil Prices Near Six-Week Highs As US-Iran Attacks Threaten Supply.
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Global oil prices hovered near six-week highs as intensifying military conflicts between the United States and Iran in and around the Strait of Hormuz triggered severe supply anxiety across international energy markets. Brent crude futures advanced $1.19 (1.2%) to $97.47 per barrel after peaking intraday at $97.93—its highest mark since July 24—building upon a massive weekly rally that saw Brent surge 7.8% and US West Texas Intermediate (WTI) jump nearly 10%. Concurrently, WTI gained 78 cents to settle at $92.26 a barrel. Shipping activity through the strategic maritime chokepoint, which typically carries roughly one-fifth of global oil supplies, plunged to an average of just 10 commodity vessels per day over the preceding 10 days, marking the lowest transit volume since May according to Kpler data.The maritime standoff escalated sharply over the weekend following US airstrikes targeting three Iranian oil tankers, including a vessel near the vital Kharg Island export hub, while the Islamic Revolutionary Guard Corps retaliated by targeting vessels utilizing unauthorized routes.
Oil prices remained near six-week highs on Monday, with Brent crude approaching $100 a barrel as renewed US-Iran attacks on vessels in and around the Strait of Hormuz raised concerns about prolonged disruptions to Middle East oil supplies.
Brent crude futures rose $1.19, or 1.2%, to $97.47 a barrel, after reaching $97.93 earlier in the session, its highest level since July 24. US West Texas Intermediate (WTI) gained 78 cents to $92.26 a barrel.
The latest gains followed a sharp increase last week, when Brent climbed around 7.8% and WTI nearly 10% as fighting resumed between Washington and Tehran and crude flows through the Strait of Hormuz declined.
Shipping activity through the strategic waterway has fallen sharply. Kpler data showed an average of only 10 commodity ships per day transited the Strait during the past 10 days, the lowest level since May. The Strait normally handles around one-fifth of global oil supply.
The maritime conflict escalated over the weekend after US forces struck three Iranian oil tankers, including one near Kharg Island, a major Iranian oil export hub. Iran’s Islamic Revolutionary Guard Corps said it also targeted tankers using what it described as unauthorised routes through the Strait, along with US-linked vessels.
Concerns intensified further after Saudi Aramco’s Jazan refinery was attacked on Monday, with the extent of damage still being assessed. Oman also evacuated 16 crew members from a Saudi-owned tanker that had been attacked the previous week.
Analysts warned that a further decline in tanker traffic could trigger a much larger supply shock. Goldman Sachs said oil prices could reach as high as $120 a barrel if attacks on shipping intensify, while ANZ expects Middle Eastern exports to remain constrained through the rest of 2026 under a prolonged standoff.
Meanwhile, OPEC+ left its October oil-output policy unchanged at its latest meeting, adding to market uncertainty over how quickly additional supply could be brought back if disruptions persist.
