Oil prices surged by about three per cent on Monday, with Brent crude climbing above $90 per barrel as US escalated its war on Iran, raising fresh concerns over oil exports through the Strait of Hormuz.
Brent crude futures rose $2.77, or 3.14 per cent, to $90.87 a barrel by 0612 GMT, reaching their highest level since June 11 after recording a weekly gain of 15.9 per cent.
US West Texas Intermediate crude also advanced by $2.35, or 2.85 per cent, to $84.84 a barrel, its highest level since June 12. The benchmark had gained 15.5 per cent last week, marking its strongest weekly performance since early March.
The latest rally followed renewed military escalation over the weekend, with the US carrying out a ninth consecutive night of strikes on Iran.
Market analysts said the conflict has intensified concerns over the security of energy supplies from the Gulf region.
“ICE Brent broke above $90 per barrel this morning with no let-up in the escalation in the Gulf,” analysts at ING said.
“The US and Iran continue to exchange strikes, which are proving to be deadly for both sides. If this escalation goes unchecked, we could return to an environment of wide-scale attacks across the Gulf.”
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