Oil prices climbed sharply on Monday, pushing Brent crude above $90 a barrel for the first time since mid-June, as renewed military action between the United States and Iran heightened concerns over crude supplies moving through the Strait of Hormuz.
Brent crude for September settlement rose 2.7% to $90.50 a barrel after climbing nearly 4% earlier in the session. U.S. West Texas Intermediate for August delivery gained 2.4% to $84.49 a barrel.
The latest advance followed another escalation in the conflict, with the United States and Iran exchanging fresh attacks over the weekend. Tehran said the ceasefire between the two countries had effectively broken down, increasing fears that disruptions to one of the world's busiest oil shipping routes could intensify.
The U.S. Central Command said American forces launched a ninth consecutive night of strikes against Iranian targets, describing the operation as an effort to further weaken military capabilities used in attacks on commercial vessels and civilian shipping. Kuwait also said it intercepted Iranian drones during the weekend.
Maritime security concerns also intensified. Iran's navy said it stopped four unidentified vessels attempting to pass through what it described as an unsafe route in the Strait of Hormuz after they ignored warnings. According to the navy, two of the vessels were involved in accidents and halted, while the remaining ships turned back.
Separately, UK Maritime Trade Operations said it had received reports from military authorities of a vessel on fire northwest of Kumzar, Oman. The cause of the incident had not been confirmed.
The conflict has broadened beyond military installations over the past week, with attacks reported on bridges, port facilities, utilities and energy infrastructure, reducing hopes of a return to the fragile truce. Kuwait Petroleum Corp. said an Iranian strike damaged one of its oil facilities on Saturday.
The Iran-backed Houthi movement has previously disrupted commercial shipping through the Red Sea during periods of heightened regional tensions. Last week, the group's leader threatened to target Saudi oil infrastructure after launching missiles and drones towards the kingdom.
Over the weekend, Kuwait was the main target of Iran's retaliatory strikes, while Bahrain also came under attack. Israel said it intercepted an Iranian drone near its border with Syria, and Iranian media reported that U.S. forces struck Qeshm Island in the Persian Gulf as well as areas around the southern city of Shadegan.
(With inputs from Bloomberg.)
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