Oil Prices Rise Again as Iran-US Tensions Escalate

Global oil prices rose significantly on Monday after fresh US strikes on Iran and Tehran's retaliatory attacks heightened tensions in the Middle East.

Brent crude rose nearly 3% to above $90 a barrel, while US West Texas Intermediate (WTI) crude gained more than 2.5%.

Around 8:45am Bangladesh time, Brent crude was up $2.51, or 2.85%, at $90.61 a barrel. WTI rose $2.13, or 2.55%, to $85.53 a barrel.

The latest escalation followed a US strike on two missile-launch systems on Iran's Larak Island in the Strait of Hormuz on Sunday. It was the first US attack on Iran since late July.

Iran subsequently launched attacks on two US air bases in Jordan, according to the country's Revolutionary Guards. Tehran claimed the attacks on King Hussein and Azraq air bases caused extensive damage.

Tony Sycamore, an analyst at IG Markets, said the market appeared to be entering another phase of escalating tensions, though it was difficult to predict how long it would last.

He said WTI could break through the resistance level of $85.80-$85.90 a barrel if the conflict intensifies. A sustained rise could push the price towards last week's high of $87.69 and eventually July's peak of $93.50.

Meanwhile, talks aimed at ending the conflict remain deadlocked. Mediators are continuing efforts to restore shipping through the Strait of Hormuz, a key global energy route that carried around one-fifth of the world's total oil supply before the war.

US Treasury Secretary Scott Bessent told Reuters on Sunday that Washington could impose new secondary sanctions on Iran every week, seeking to further isolate Tehran from the global dollar-based financial system.

Despite the latest rise, Brent and WTI prices are expected to post modest declines for August. Both benchmarks fell more than 4% last week as concerns over major supply disruptions eased somewhat following increased oil shipments through the Strait of Hormuz.

ANZ analysts said the increase in oil movements through the waterway had reduced fears of a major supply disruption, although no clear agreement has yet been reached on reopening the route fully.

Shipping data showed that visible commercial vessel traffic through the Strait of Hormuz fell to only around five vessels a day over the weekend amid heightened security concerns. Several shipping companies have adopted a cautious approach because of fears of attacks.

The UK's Maritime Trade Operations agency said Sunday that a tanker was struck by a projectile while transiting inward through the Strait of Hormuz on Saturday.

Separately, US President Donald Trump said Sunday that oil obtained under a recently announced deal with Venezuela would be used to replenish the US strategic petroleum reserve, which has fallen close to its lowest level in 44 years.