Oil prices remained elevated on Monday as persistent geopolitical tensions in the Middle East constrained supply risks, with Brent crude and U.S. West Texas Intermediate futures climbing 0.8% and 0.4% respectively.
Brent crude futures reached $92.33 per barrel, while WTI futures traded at $86.16 per barrel, reflecting limited upside after a two-week surge that has lifted prices by roughly 15% since late June. Analysts cited the ongoing standoff between the U.S. and Iran, which has disrupted maritime traffic through the Strait of Hormuz—a critical chokepoint for global oil shipments.
Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, said the market is likely to maintain its gradual upward trajectory as long as supply disruptions persist. The Strait of Hormuz, through which about one-fifth of the world’s seaborne oil passes, has seen reduced tanker traffic amid heightened military posturing and periodic attacks on commercial vessels.
The conflict has raised concerns over potential supply shortages, particularly from key producing regions in the Persian Gulf. While OPEC+ has maintained production cuts aimed at stabilizing markets, the risk of further disruptions has kept traders cautious. Futures curves remain in a contango structure, signaling expectations of tighter supply conditions in the near term.
Investors are closely monitoring developments in the region, where any escalation could trigger sharper price spikes. Despite the volatility, most market participants expect prices to remain supported by structural supply tightness, with geopolitical risks providing an additional premium.
