Oil prices rise 2% on Iran tensions
- Oil prices increased nearly 2% after U.S. strikes on Iran’s Larak Island and reported Iranian retaliation raised concerns about the Strait of Hormuz.
- Brent crude rose $1.77 to $89.87 per barrel, while WTI crude gained $1.45 to $84.85 per barrel.
- Market analysts said prices could remain between $85 and $95 per barrel if the conflict remains contained and Hormuz reopening timelines stay uncertain.
Brent crude futures rose 2% to $89.87 per barrel and U.S. West Texas Intermediate crude increased 1.74% to $84.85 after U.S. strikes on Iran’s Larak Island intensified concerns about energy flows through the Strait of Hormuz.
The move came as the U.S.-Iran conflict entered its sixth month, with oil markets reacting to renewed military activity after crude prices had declined more than 4% the previous week.
“We see more chances of contained confrontation rather than any sustained escalation in the conflict,” said Suvro Sarkar, head of energy research at DBS.
The number of visible commodity vessels passing through the Strait of Hormuz fell to five per day over the weekend, while the United Kingdom Maritime Trade Operations reported that a tanker was struck by a projectile while entering the strait on Saturday.
Analysts said oil prices could remain rangebound between $85 and $95 per barrel unless there is more clarity on the situation in the Strait of Hormuz.
The Strait of Hormuz is a major global oil transit route, with about one-fifth of global oil supply passing through the waterway before the conflict began at the end of February.
The market is also watching potential U.S. sanctions on Iran and efforts to replenish the U.S. Strategic Petroleum Reserve after President Donald Trump said oil from a recent Venezuela deal would be used for storage.
