Brent crude futures edged up 52 cents to $96.80 a barrel by 2354 GMT, while U.S. West Texas Intermediate crude rose 66 cents to $92.14 a barrel, reflecting fresh tensions between the United States and Iran over maritime attacks in the Strait of Hormuz.
Last week Brent gained 7.8% and WTI nearly 10% after the U.S. and Iran resumed strikes on oil tankers, cutting the flow of oil through the Hormuz strait, where a fifth of the world’s oil passes.
U.S. Central Command confirmed on Saturday that U.S. forces had struck three Iranian oil tankers, including one off the coast of Kharg Island, a key Iranian export hub. The Iranian Revolutionary Guard Corps said it had targeted three oil tankers traveling on unauthorized routes in the strait and three additional U.S. vessels elsewhere.
Marisks, a maritime intelligence firm, described the Saturday attacks as a “major escalation in the maritime conflict” and warned that “commercial tankers are now being deliberately used as instruments of reciprocal economic pressure, substantially weakening the previous distinction between military confrontation and commercial shipping.”
Data from analytics firm Kpler showed an average of 10 commodity ships transited the Strait of Hormuz per day over the past ten days, the lowest since May. A restricted zone around the strait is expected to be announced in the coming days, according to Iran’s Supreme National Security Council secretary Mohsen Rezaei.
OPEC+ maintained its October output policy unchanged, stating that new quotas must be agreed before any further production adjustments. Analysts from ANZ note that a prolonged standoff, punctuated by calibrated military action, is likely, potentially delaying a full recovery of Middle East supply until late 2026 or early 2027.
Investors and traders will watch upcoming OPEC+ meetings and U.S.‑Iran diplomatic developments closely, as any escalation could further tighten supply and keep prices elevated.
