Brent crude climbed above $90 per barrel on Monday for the first time in more than a month after the worsening US war on Iran fueled fears of supply disruptions through the Strait of Hormuz, one of the world’s most important oil shipping routes.
At the time of press, Brent crude futures rose more than 3 percent to as high as $90.87 a barrel, while US West Texas Intermediate (WTI) crude climbed to around $84.84 per barrel.
Both benchmarks have gained more than 15 percent over the past week.
Oil prices have surged after the United States carried out a ninth consecutive night of strikes against Iran, while renewed attacks around the Strait of Hormuz raised concerns over the movement of crude oil and fuel shipments.
The waterway handles about 20 percent of global oil trade, making any disruption a major risk for energy markets.
Market is increasingly pricing in the possibility of prolonged supply disruptions as tanker traffic through the Strait of Hormuz remains below normal levels. Barclays warned that global oil inventories are already at their lowest level in five years, leaving the market more vulnerable to further supply shocks.
The latest rally is also expected to increase pressure on oil-importing countries such as Pakistan, where higher international crude prices typically translate into a larger import bill, increased fuel costs and renewed inflationary pressures.
