Oil prices extended gains on Monday as tit-for-tat strikes between the United States (US) and Iran on vessels sailing in the Strait of Hormuz and other areas heightened concerns of a prolonged supply disruption from the Middle East.
Brent crude futures climbed 79 cents, or 0.82%, to $97.07 a barrel by US West Texas Intermediate (WTI)crude was at $92.28 a barrel, up 80 cents, or 0.87%.
Brent rose 7.8% last week while WTI gained nearly 10% after the US and Iran resumed attacks and caused a reduction in oil flows through the Hormuz strait where a fifth of the world’s oil supply used to transit.
US forces struck three Iranian oil tankers on Saturday, US Central Command said, including one off the coast of Kharg Island, near Iran’s key oil export hub.
The navy of Iran’s Islamic Revolutionary Guard Corps said on Saturday it targeted three oil tankers that were travelling through unauthorised routes in the Strait of Hormuz as well as three additional US vessels in other areas.
–Reuters–
