Global crude oil prices increased by more than 2% on Monday as renewed military tensions between the United States and Iran added to uncertainty in the Middle East, where the ongoing conflict has entered its sixth month.
According to a report, Brent crude futures rose $2.51, or 2.85%, to $91.25 per barrel. US West Texas Intermediate (WTI) crude gained $2.13, or 2.55%, to $86.35 per barrel, while Abu Dhabi’s Murban crude was trading at $95.75 per barrel.
The latest rise in oil prices followed a US military strike on Sunday targeting two launchers on Iran’s Lark Island in the Strait of Hormuz. The action was described as the first known US strike against Iran since late July.
In response, Iran’s Islamic Revolutionary Guard Corps reportedly targeted two US air bases in Jordan, according to Iranian media citing the IRGC.
Market analyst Tony Sycamore said tensions in the region appeared to be escalating again, although it remained difficult to determine how long the situation would persist. He said the renewed tensions could last for several days or even weeks.
Technical analysis suggests that further escalation could push WTI prices higher. If the benchmark breaks through the resistance level of $85.80-$85.90 per barrel, prices could initially move towards last week’s high of $87.69 and potentially reach the July level of $93.50 per barrel.
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