Oil extends gains after US and Iran strike ships

Oil prices rose further on Monday, with Brent crude futures up 79 cents, or 0.82 per cent, reaching $97.07 per barrel at 0512 GMT, according to Business Recorder. Retaliatory attacks by the United States and Iran on vessels in the Strait of Hormuz and elsewhere raised fears of a longer disruption to Middle East supply. US West Texas Intermediate was at $92.28 a barrel, 80 cents higher.

Brent had gained 7.8 per cent over the previous week and WTI nearly 10 per cent, after the two sides resumed attacks that reduced flows through Hormuz, a route that once carried a fifth of global supply. On Saturday, US Central Command said American forces hit three Iranian oil tankers, one of them near Kharg Island, a key Iranian oil export point. Iran's Revolutionary Guards navy said it targeted three tankers using unauthorized routes and three more US vessels, while the maritime intelligence firm Marisks described the strikes as a serious step up in the sea confrontation.

Kpler data showed an average of 10 commodity ships transited the strait daily over the past 10 days, the lowest level since May. OPEC+ kept its October output policy unchanged at a Sunday meeting, while ANZ analysts said exports were likely to stay limited for the remainder of 2026, with a slow reopening toward the end of the fourth quarter.