Oil prices hit one-month high on Monday

Oil prices rose on Monday to their highest level in more than a month as escalating hostilities between the United States and Iran disrupted oil shipments through the Strait of Hormuz, raising concerns over global supply.

Brent crude futures climbed 1.17 per cent to $89.13 a barrel after briefly trading above $90, while US West Texas Intermediate (WTI) crude gained 0.79 per cent to $83.14 a barrel. Brent and WTI posted weekly gains of 15.9 per cent and 15.5 per cent, respectively, last week.

Analysts said repeated attacks on vessels crossing the Strait of Hormuz have reduced tanker traffic, tightening the oil market and supporting prices. Data showed only four vessels transited the strait on Sunday, down from eight the previous day.

The latest gains followed an escalation in the US-Iran conflict over the weekend, with both sides targeting shipping in and around the Strait of Hormuz. The disruption has renewed concerns over global energy supplies, as the waterway normally carries about 20 per cent of the world’s oil.

Attribution: Reuters