Oil Prices Rise Amid U.S.-Iran Maritime Strikes

Oil prices saw an increase on Monday due to escalating tensions between the U.S. and Iran, marked by reciprocal strikes on vessels in the Strait of Hormuz and surrounding areas.

Brent crude futures rose by 52 cents to $96.80 a barrel, while U.S. West Texas Intermediate crude increased by 66 cents to $92.14 a barrel. Last week, Brent gained 7.8% and WTI nearly 10% as attacks led to reduced oil flows through the critical Strait of Hormuz, which is a transit route for a significant portion of the world's oil supply.

U.S. Central Command reported that U.S. forces targeted three Iranian oil tankers on Saturday, while Iran's Islamic Revolutionary Guard Corps claimed to have struck three oil tankers and additional U.S. vessels. This escalation has blurred the lines between military actions and commercial shipping, according to maritime intelligence firm Marisks. Data indicated a drop in commodity ship transits through the Strait, and Iran announced plans to establish a restricted zone in the area. OPEC+ maintained its oil output policy unchanged for October, as analysts predict a prolonged standoff that may delay the recovery of Middle Eastern oil supply.