Oil prices rise on Monday

Global oil prices rose on Monday as investor focus returned to risks facing Middle East energy facilities despite US President Donald Trump’s call for countries to help secure the Strait of Hormuz, a key route for global oil shipments.

Brent crude rose $2.73, or 2.7 per cent, to $105.87 a barrel by 0730 GMT after gaining $2.68 on Friday, while US West Texas Intermediate crude climbed $1.65, or 1.7 per cent, to $100.36 a barrel after rising nearly $3 in the previous session.

Both benchmarks have surged more than 40 per cent this month to their highest levels since 2022 after US-Israeli attacks on Iran prompted Tehran to halt shipping through the Strait of Hormuz, disrupting about a fifth of global oil supply.

Analysts at ING said US strikes over the weekend on Iran’s Kharg Island raised supply concerns as most of the country’s oil exports pass through the facility, which handles about 90 per cent of shipments.

Tensions escalated further after Iranian drones struck an oil terminal in Fujairah in the United Arab Emirates, though loading operations later resumed. The port, located outside the Strait of Hormuz, exports about 1 million barrels per day of the UAE’s Murban crude.

Meanwhile, the International Energy Agency said more than 400 million barrels of oil reserves will be released to the market to ease price pressures caused by the Middle East conflict. US Energy Secretary Chris Wright said he expects the war to end within the next few weeks, allowing oil supplies to recover and energy prices to fall

Attribution: Reuters