According to a report by Reuters news agency, Brent crude futures rose by $2.69, or 3.05 percent, to $90.79 per barrel on Monday. This is the highest price since June 11. Earlier last week, Brent prices had risen by 15.9 percent, the biggest weekly jump since April.
During the same period, US West Texas Intermediate (WTI) crude oil prices rose by $2.19, or 2.65 percent, to $84.68 per barrel. This is the highest since June 12. Last week, WTI prices increased by 15.5 percent, the largest weekly gain since early March.
According to analysts, the deterioration of the security situation in the Middle East over the weekend has increased fears of a supply crisis in the market. The US has carried out attacks on various Iranian targets for the ninth consecutive night. Meanwhile, US allies Kuwait and Bahrain have reported new Iranian attacks.
Recently, both sides have been targeting maritime traffic. The US has said it has imposed a naval blockade on Iranian ports. On the other hand, Iran claims that ships violating navigation rules in the Strait of Hormuz are being targeted.
About 20 percent of the world's total seaborne crude oil is transported through the Strait of Hormuz. Therefore, any instability in this region has an immediate impact on the global energy market.
Meanwhile, the United Kingdom Maritime Trade Operations (UKMTO) reported that a fire broke out on a ship northwest of Kumzar, Oman, early Monday morning.
Barclays analyst Amarpreet Singh said how normal oil exports from the region will remain due to the reimposed naval blockade will depend on the situation in the coming days and weeks.
He further said that the current market has not yet fully priced in the risk of a potential supply crisis. Global oil inventories are now lower than at the start of the war and are at their lowest level in the past five years.
According to LSEG data, only four ships passed through the Strait of Hormuz on Sunday, half of the eight the previous day. During the same period, at least three oil tankers and one Very Large Crude Carrier (VLCC) entered the strait for loading oil.
