Five platforms are seen over the Johan Sverdrup oil field in the North Sea, about 140 kilometers west of the Norwegian town of Stavanger, on December 3, 2019, in an aerial photo taken from a helicopter during a media visit. (Photo by Tom LITTLE/AFP) (Photo by TOM LITTLE/AFP, Getty Images)
Tom Little | AFP | Getty Images
Oil prices rose on Monday as the U.S.-Iran conflict raised concerns about disruption to energy shipments through the Strait of Hormuz following renewed U.S. attacks and U.S. military casualties.
international benchmark brent crude oil Prices for September delivery rose about 2.54% to over $90 per barrel. US West Texas Intermediate Crude The stock for delivery in August rose about 2.29% to $84.38.
The escalation comes as the U.S. military confirmed that a third American service member was killed in recent operations, while investigators recovered an unidentified body near the site of an Iranian attack in Jordan that previously left two U.S. service members dead and one missing.
American forces have completed nine consecutive nights of strikes against Iranian targets. “This attack will continue to degrade Iran’s military ability to attack commercial vessels and civilian sailors transiting the Strait of Hormuz,” U.S. Central Command said in a statement carried by X News.
The new hostilities have reignited concerns about the safety of one of the world’s most important oil shipping routes.
US Centcom targets Iran’s coastal surveillance and air defense systems, maritime assets, and storage facilities for missiles and drones. The U.S. military also attacked Islamic Revolutionary Guard Corps units linked to the July 17 attack on U.S. soldiers in Jordan.
Quantum Strategy’s David Roche highlighted in a note on Monday that global oil markets have tightened significantly as Gulf exports decline.
“If depleted at this rate, oil stocks will be tight in September and even the US will feel stressed. That will increase TACO pressure on President Trump. We want to keep Brent at $95 to $105 a barrel for a long time.”
