An aerial view taken from an helicopter during a media visit shows five platforms over the Johan Sverdrup oil field in the North Sea some 140 kilometres west from the town of Stavanger, Norway, on December 3, 2019. (Photo by Tom LITTLE / AFP) (Photo by TOM LITTLE/AFP via Getty Images)
Tom Little | Afp | Getty Images
Oil prices rose Monday after as continued conflict between the United States and Iran heightened concerns over disruptions to energy shipments through the Strait of Hormuz, following another round of U.S. strikes and American military casualties.
International benchmark Brent crude for September delivery rose about 2.77% to top $90 per barrel, while U.S. West Texas Intermediate crude for August delivery climbed roughly 2.4% to $84.49.
The latest escalation comes after the U.S. military confirmed a third American service member had been killed in recent operations, while investigators recovered unidentified remains near the site of an Iranian attack in Jordan that had previously left two U.S. personnel dead and another missing.
American forces have started a ninth consecutive night of strikes against Iranian targets. “The strikes will continue degrading Iranian military capabilities used to attack commercial vessels and civilian mariners transiting the Strait of Hormuz,” the U.S. Central Command said in statement on X.
The renewed hostilities have revived concerns about the security of one of the world’s most important oil transit routes.
U.S. Centcom said has targeted Iranian coastal surveillance and air defense systems, maritime assets, as well as missile and drone storage facilities in its strikes. American forces have also struck Islamic Revolutionary Guard Corps units linked to the July 17 attack on U.S. personnel in Jordan.
Quantum Strategy’s David Roche highlighted in a note on Monday that the global crude market has become significantly tighter as Gulf exports dwindle.
“At this rate of depletion oil inventories get tight in September and even the U.S. gets stressed. That will up the TACO pressure on President Trump. Stay long Brent with a target of $95 to $105 a barrel.”
