Oil prices surged more than 3% on Monday as military escalations between the United States and Iran heightened supply disruption risks in the Middle East. Brent crude futures rose $2.87, or 3.26%, to $90.97 per barrel by 08:20 Brasília time, while U.S. West Texas Intermediate crude climbed $2.91, or 3.49%, to $86.31.
The gains followed weekend strikes in the Strait of Hormuz, a critical chokepoint for global oil transit. U.S. forces targeted two launchers on Larak Island on Sunday, the first such strikes since late July, while Iran retaliated by attacking two U.S. air bases in Jordan. Earlier on Saturday, a tanker was struck by a projectile upon entering the strait, according to the UK Maritime Trade Operations agency.
Despite the daily advance, both benchmarks were on track for modest weekly declines in August, falling more than 4% in the prior week. This marked the first weekly drop in three weeks for both Brent and WTI. Analysts noted that the market remains sensitive to geopolitical developments, with U.S. President Donald Trump posting on social media that an Iranian energy hub on Kharg Island was being "reduced to splinters," though no evidence confirmed an attack and Iran denied any strike.
UBS analyst Giovanni Staunovo said renewed military actions in the Middle East and concerns over potential supply disruptions were driving the price increase. "New military attacks in the Middle East and concerns about new supply disruptions have lifted oil prices," he said, adding that markets would focus on whether the situation stabilizes or escalates further.
The conflict, now in its sixth month since late February, has already seen one-fifth of global oil supply transit the Strait of Hormuz before the recent escalations. Navigation data showed cargo ship transits through the strait fell to five per day over the weekend, down from prior levels.
