Brent crude rose above $97 a barrel on Monday, extending last week’s gains after the United States and Iran attacked oil tankers over the weekend, raising concerns about further disruption to energy flows through the Strait of Hormuz.
Brent futures rose $1.20, or 1.25%, to $97.48 a barrel by 0727 GMT, while U.S. West Texas Intermediate crude gained $1.14, or 1.25%, to $92.62.
Brent gained 7.8% last week as renewed fighting between the two countries disrupted shipping in the Gulf.
U.S. forces struck three Iranian oil tankers on Saturday, including one near Kharg Island, Iran’s main oil export hub, after Iran’s Islamic Revolutionary Guard Corps launched ballistic missiles at two U.S. Navy ships, according to U.S. officials.
Iran later said it had targeted three oil tankers using unauthorised routes through the Strait of Hormuz and three U.S. vessels elsewhere.
The attacks have coincided with a sharp decline in commercial shipping through the Strait. An average of 10 commodity vessels crossed the waterway each day over the past 10 days, the lowest level since May, according to Kpler data cited by Reuters. Two vessels crossed on Saturday and six on Sunday.
The Strait of Hormuz, through which about a fifth of global oil supplies normally pass, has become a key focus for oil markets as the conflict threatens to restrict shipments from major Middle Eastern producers.
Iran said on Monday it would introduce a new restricted maritime zone beyond the Strait of Hormuz in the coming days and that it had agreed with Oman on maps for a new international shipping corridor through the waterway.
U.S. Energy Secretary Chris Wright said oil was still moving through the Strait, with flows averaging more than 9 million barrels per day, although the level remained below pre-conflict volumes.
OPEC+ agreed on Sunday to keep its oil output policy unchanged for October, leaving the market focused on the impact of the conflict on physical supplies and tanker movements.
Analysts at ANZ said a prolonged standoff and intermittent military action could keep Middle Eastern oil exports constrained through the rest of the year, with flows potentially returning to pre-war levels only in late 2026 or early 2027.
