Brent crude climbed toward $100 a barrel on Monday, reaching its highest level in six weeks as renewed attacks involving U.S. and Iranian forces and commercial vessels intensified concerns over prolonged disruptions to Middle East oil supplies.
Brent futures rose as high as $97.93 a barrel, their strongest level since July 24, after gaining nearly 8% last week. U.S. West Texas Intermediate crude traded above $92 a barrel after advancing almost 10% during the previous week.
The latest gains leave Brent substantially above levels seen before the outbreak of the Iran conflict, reflecting a growing geopolitical risk premium as shipping through the Strait of Hormuz remains constrained.
U.S.-Iran Attacks Intensify Supply Concerns
U.S. forces struck three Iranian oil tankers on Saturday, including one near Kharg Island, a major Iranian oil export hub, according to U.S. Central Command.
Iran’s Islamic Revolutionary Guard Corps said it targeted three tankers traveling through routes it considered unauthorized in the Strait of Hormuz, as well as three U.S.-linked vessels elsewhere. Maritime intelligence firm Marisks described the attacks as a major escalation in the use of commercial shipping as a source of economic pressure.
Shipping activity through Hormuz has fallen sharply. An average of about 10 commodity vessels per day crossed the strait during the past 10 days, the lowest level since May, according to Kpler data cited by Reuters.
The Strait of Hormuz is one of the world’s most important energy chokepoints, historically handling roughly one-fifth of global oil flows.
Iran and Oman Work on New Hormuz Shipping Corridor
Iran has also said that maps for a new international shipping corridor involving Iranian and Omani waters have been agreed and could be signed in the coming days.
Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, said Tehran also plans to announce a new restricted zone extending toward the Strait of Hormuz and parts of the Persian Gulf. Precise boundaries and operating conditions have not yet been disclosed.
The announcement follows earlier efforts by Iran and Oman to establish temporary maritime routes through the strait.
U.S. Naval Presence Remains in the Gulf
U.S. Energy Secretary Chris Wright said Sunday that Washington could not guarantee safe passage through Hormuz without U.S. Navy escorts and indicated that an extended American military presence in the region could become necessary as the conflict continues.
The continuing attacks have created conflicting signals about actual oil flows through the waterway. U.S. officials have reported higher volumes on some days than private vessel-tracking services, partly because some ships are operating without publicly visible tracking signals.
Oil Market Faces Reduced Supply Cushion
The geopolitical tensions come as governments have drawn on strategic inventories to help offset disruptions and elevated energy costs. Recent estimates put the U.S. Strategic Petroleum Reserve at roughly 287 million barrels, near its lowest level since the early 1980s.
At the same time, OPEC+ decided Sunday to keep its oil production policy unchanged for October while the group works toward new production quotas.
The combination of restricted shipping through Hormuz, attacks on tankers and uncertainty over the duration of the U.S.-Iran conflict has kept a substantial geopolitical premium embedded in crude prices. The extent of physical supply disruptions and the volume of oil continuing to move through alternative routes remain central factors shaping global crude markets.
