Oil prices extended their gains by 6% on Monday as Iran renewed its attack on the UAE and ships in the Strait of Hormuz over the past 24 hours. Considered as one of the most serious escalations since the ceasefire came into force early April, oil prices have been wavering tremendously.
Brent futures rose $6.79, or 6.3%, to $114.96 per barrel at 12:54 p.m. EDT (1654 GMT), highest since 2022. While U.S. West Texas Intermediate (WTI) crude rose $4.23, or 4.2%, to$106.17.
Earlier on Monday, Iranian strikes targeted the United Arab Emirates, where a fire was reported at Fujairah’s oil hub and a tanker was hit near the strait. Iran also warned US naval vessels, while Washington pushed to restore shipping through the route, though security risks continue to keep shipowners cautious.
Reports hint a South Korean Vessel may also been attacked in the past 24 hours. UAE has accused Iran of attacking an empty crude oil tanker belonging to Abu Dhabi state oil firm as it attempted to pass through.
About 20% of the global oil and LPG passed through the Strait of Hormuz before the US and Israel launched strikes against Iran on February 28th. The blockade has reduced the transport to near zero disrupting the demand and supply chain globally. The International Energy Agency has called the conflict in the Middle East the biggest supply shock in the history.
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