Oil prices moved higher on Monday, extending last week’s strong gains as renewed U.S.-Iran tensions raised concerns over crude supply disruptions through the Strait of Hormuz.
Brent crude futures for November delivery climbed 1.4% to $97.58 per barrel, while West Texas Intermediate futures rose 1.3% to $92.69 per barrel.
Brent and WTI Extend Strong Weekly Gains
Oil prices entered the week with strong momentum.
Brent crude gained around 8% last week, while WTI surged nearly 10% as shipping activity through the Strait of Hormuz declined.
The latest gains reflect growing concern that military escalation could interfere with one of the world’s most important energy transit routes.
U.S. Strikes Iranian Oil Tankers
The U.S. military said it struck three Iranian oil tankers on Saturday.
The attacks followed reports that Iranian forces had targeted U.S. Navy vessels with ballistic missiles.
Iran later said it had attacked a U.S. naval drone and warned that additional American strikes could lead to a stronger response.
The latest exchange has increased uncertainty across global oil markets.
Iran Plans New Restricted Maritime Zone
Iran’s top security official said Tehran plans to introduce a new restricted maritime zone outside the Strait of Hormuz in the coming days.
According to Press TV, vessels entering the area could potentially face sanctions.
The announcement has raised additional concerns over commercial shipping and energy flows through the region.
Strait of Hormuz Remains Critical for Global Oil Supply
The Strait of Hormuz plays a crucial role in global energy markets.
Roughly one-fifth of global oil consumption normally passes through the waterway.
Any prolonged disruption could tighten global supply and place further upward pressure on crude oil prices.
Oil Still Flows Despite Rising Tensions
Despite the escalation, oil shipments through the region have not stopped.
ING analysts said the market remains well supported because there are few signs of a near-term resolution between the United States and Iran.
However, they also noted that crude continues to move through the strait.
The U.S. energy secretary said oil flows through the Strait of Hormuz are averaging slightly above 9 million barrels per day, supported by U.S. Navy escorts.
OPEC+ Keeps October Production Steady
Oil markets are also reacting to the latest OPEC+ policy decision.
Following its Sunday meeting, OPEC+ said it will keep oil production unchanged in October.
The decision pauses six consecutive months of output increases.
The group is now shifting its attention toward setting new production quotas for 2027.
Oil Price Outlook Remains Sensitive to Geopolitical Risk
The outlook for crude oil remains closely tied to developments in the Strait of Hormuz.
Further attacks, shipping restrictions or disruptions to tanker traffic could push oil prices higher.
For now, Brent above $97 and WTI above $92 show that geopolitical risk remains a major driver of the energy market.
