Oil rises above $90 as supply disruption fears intensify

Oil prices climbed on Monday as fears of supply interruptions grew after the US hit two Iranian rocket launchers near the Strait of Hormuz. According to Mettis Global data, Brent crude futures rose 2.81% to $90.58 per barrel, while West Texas Intermediate gained $2.16, or 2.59%, to $85.56 by 11:00 am PST. The US Central Command confirmed the strike on Larak Island, saying American forces acted after Iranian Revolutionary Guard personnel were seen readying rockets equipped with sea mines for launch into the waterway.

The Revolutionary Guards acknowledged that several of their personnel were dead or hurt after the attack, while Iranian media reported a counterattack on American bases in Jordan. The Associated Press noted that this was the first openly acknowledged American strike on Iran since late July. The Strait of Hormuz, a key route for energy shipments, has already been seriously disrupted as the conflict enters its sixth month.

Looking ahead, supply risks are expected to persist, with worldwide crude stocks set to keep declining in the weeks and months ahead. Separately, strikes on oil refineries across the Middle East and Russia have squeezed available fuel, and margins on refined products have reached new peaks.