Oil prices rose over $1 a barrel on Monday as tensions between the U.S. And Iran escalated, with both sides targeting vessels in the Strait of Hormuz and other regions. The tit-for-tat attacks have raised fears of prolonged supply disruptions from the Middle East. Brent crude futures increased by $1.20, or 1.25%, to $97.48 a barrel, while U.S. West Texas Intermediate crude rose $1.14, or 1.25%, to $92.62 a barrel.
The conflict has affected Iranian communities near the Strait of Hormuz, with the port of Bandar Abbas and surrounding areas suffering repeated strikes since late February. Local workers report ongoing disruptions to port operations, highlighting the economic toll on the region. Meanwhile, Iran’s top negotiator has warned that U.S. Oil and gas companies could face consequences following the attacks.
The U.S. And Iran have exchanged accusations over the strikes, with the U.S. Citing Iranian attacks on vessels as a response to earlier strikes on Iranian sites. Iran has announced plans to establish a new exclusion zone near the Strait of Hormuz, further complicating maritime traffic. The situation continues to impact global oil markets and regional stability.
