Oil prices surge past $90 as risks rise in Hormuz and Bab Al-Mandab

Global oil prices have surged past $90 a barrel, driven by escalating military tensions between the United States and Iran, prompting growing warnings over the stability of global supplies. According to radiobicentenario.com.ar, Brent crude, the international benchmark, reached $91 a barrel—its highest level since June 11—extending gains from last week.

The same source reported that the oil market began the week with slight profit-taking, yet prices remain elevated due to the ongoing military escalation in the region. West Texas Intermediate (WTI) crude traded at around $83, after both benchmarks briefly topped $90 during Monday’s session.

Radiobicentenario.com.ar noted that Iran’s Islamic Revolutionary Guard Corps announced new attacks on US military targets in Bahrain and Kuwait during the morning hours, while Washington confirmed its military operations against Iranian targets have continued for a tenth consecutive day. Iranian President Masoud Pezeshkian described the situation as a “full-scale war,” while the US administration emphasized that operations would continue to reduce Iran’s military capabilities in the region.

Despite the military escalation, diplomatic efforts to contain the crisis are ongoing. Pakistan is maintaining contacts with Iranian officials, while US Secretary of State Marco Rubio affirmed Washington’s readiness to resume negotiations if conditions are appropriate, according to radiobicentenario.com.ar.

Analysts believe the market still expects the impact of the unrest on global supplies to remain limited, which explains Brent’s slight retreat from its peak, though it remains nearly 4% higher than last week. ING noted that threats to Bab Al-Mandab could increase shipping and marine insurance costs, but warned that markets have yet to fully price in the possibility of a prolonged closure.