Oil prices climbed on Monday after US strikes on Iranian military assets on Kharg Island over the weekend heightened tensions in the Persian Gulf and raised concerns about potential disruptions to global energy supplies, ANI reported.
While the global benchmark Brent crude traded at $104.79, up 1.59 percent from the previous close at around 9:45 am, the US benchmark West Texas Intermediate (WTI) crude rose 3.77 percent to $102.44 a barrel,
The gains came after Iran launched retaliatory attacks on Israel and several Arab states following US strikes on military facilities on Kharg Island, which handles the bulk of Iran’s crude exports.
US President Donald Trump warned that Iran’s energy infrastructure on the island — responsible for roughly 90 per cent of the country’s oil shipments — could face further attacks if Tehran attempts to disrupt shipping through the Strait of Hormuz, one of the world’s most critical oil transit routes.
Trump also called on other countries to help secure the strategic waterway linking Persian Gulf energy producers to global markets.
According to ANI, Washington has urged major oil-importing countries, including China and Japan to consider deploying naval vessels to the region to help ensure the safe movement of tankers.
Nearly one-fifth of global oil shipments and significant volumes of seaborne Liquefied Natural Gas (LNG) pass through the narrow strait each day.
The United States has also directed the Navy’s Fifth Fleet to escort commercial vessels operating in the region in a bid to deter potential attacks on shipping.
The escalation has intensified concerns about supply disruptions in the global oil market. The International Energy Agency (IEA) has warned that the conflict could result in one of the largest disruptions to global oil supply in recent years as shipping traffic through the Strait of Hormuz slows.
Meanwhile, the United Arab Emirates resumed loading operations at the key export hub of Port of Fujairah on Sunday after a drone strike temporarily halted shipments from the country’s main export route.
Oil markets had already been volatile last week, with Brent crude rising about 11 per cent and briefly touching $119.50 per barrel, levels last seen in the months following Russia’s invasion of Ukraine, before easing to around $103 per barrel.
