Brent crude futures climbed on Monday as renewed military strikes between the United States and Iran disrupted shipping lanes through the Strait of Hormuz.
The escalation marks a significant deterioration in the interim peace deal that had previously calmed regional tensions, forcing traders to reassess the risk of supply disruptions from the world’s most critical oil transit point.
The tit-for-tat attacks have slowed energy shipping through the strait, raising immediate concerns about the flow of crude and refined products to global markets.
With the Strait of Hormuz handling roughly a fifth of the world’s oil consumption, any sustained slowdown in tanker traffic translates directly into tighter supply conditions and higher price volatility.
The move comes after a period of relative stability, with oil prices having retreated earlier in the week as hopes for a diplomatic resolution appeared to strengthen.
The latest flare-up underscores the fragility of the current geopolitical equilibrium in the Middle East.