LAGOS – Global oil prices jumped over 3% on Monday, with benchmark Brent crude breaching $90 a barrel as intensifying military exchanges between the United States and Iran severely restricted energy shipments through the strategic Strait of Hormuz.
Brent crude futures climbed 3.05% to $90.79 a barrel, while U.S. West Texas Intermediate rose 2.65% to $84.68. The surge extends a massive rally from last week, where Brent gained 15.9%.
The price spike followed a ninth consecutive night of U.S. airstrikes against Iran. Tensions exploded after Tehran declared the collapse of a brief, month-old provisional ceasefire agreement.
Compounding market fears, the United Kingdom Maritime Trade Operations reported a commercial vessel caught fire northwest of Oman. Meanwhile, Kuwaiti authorities confirmed an Iranian strike damaged a domestic oil facility over the weekend.
The escalating theater has directly choked the Strait of Hormuz, a choke point handling 20% of global petroleum trade. Ship transits plummeted to just four vessels on Sunday, down from eight the prior day.
A newly reinstated U.S. naval blockade on Iranian ports faces a counter-offensive from Tehran, which has begun intercepting commercial tankers. This dual-blockade dynamic has triggered an aggressive pricing of risk by energy traders.
Analysts warn the market is highly vulnerable to supply shocks. Barclays reported that global crude inventories outside China have hit a five-year low, leaving virtually no structural buffer if Middle East infrastructure suffers permanent damage.
