Intensified US-Iran Conflict Pushes Brent Futures Above $90/bbl

Global oil prices continued their upward momentum at the start of the week as escalating tensions between the United States and Iran increased concerns over crude supply disruptions from the Middle East. Both Brent and WTI crude futures climbed more than 2%, with Brent crossing the $90/bbl mark for the first time in over a month as traders reacted to growing risks surrounding the Strait of Hormuz.

Brent Surpasses $90/bbl

During Monday's trading, Brent crude futures gained $2.34 (2.66%) to reach $90.44/bbl, its highest level since June 11. The benchmark extended last week's strong rally of nearly 16%, marking its best weekly performance since April.

Meanwhile, WTI crude futures rose $1.95 (2.36%) to $84.44/bbl, the highest level since June 12, after recording a weekly gain of around 15.5%, its strongest rise since early March.

The rally follows Friday's sharp surge, when Brent settled at $88.10/bbl after rising 4.59%, while WTI closed at $82.49/bbl, up 4.48%, amid growing fears of disruptions to global oil transportation.

Rising Geopolitical Risks Support Oil Prices

The latest gains were driven by an escalation in military tensions over the weekend. The United States continued its military operations against Iran, while Iran intensified its regional response. At the same time, both countries increased pressure on maritime trade, raising fresh concerns over shipping activity in the Gulf region.

The Strait of Hormuz, one of the world's most important oil shipping routes, remains at the center of market attention. With nearly one-fifth of global oil shipments passing through the strait, any disruption could significantly impact worldwide energy supplies.

Shipping activity has already slowed noticeably, adding to concerns that prolonged geopolitical tensions could tighten global crude availability and keep oil prices elevated in the near term.

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