Oil prices surge as US-Iran strikes intensify in Strait of Hormuz

What the report says

Oil prices climbed sharply on Monday after exchanges of strikes between the United States and Iran intensified around the Strait of Hormuz, the narrow shipping route through which roughly one-fifth of global oil supplies normally passes in peacetime. Al Jazeera, citing market data and Reuters, reported that Brent crude rose to about $97 a barrel, while US West Texas Intermediate also moved higher, both nearing six-week highs.

The report said recent attacks included US strikes on three Iranian oil tankers and claims by Iran’s Islamic Revolutionary Guard Corps that it had hit three tankers and three US-linked vessels elsewhere. Al Jazeera also noted reporting that Saudi Aramco facilities in Jizan were struck again, adding to concerns that regional energy infrastructure could remain vulnerable. Shipping activity through the Strait of Hormuz has also slowed, with fewer commodity vessels crossing the chokepoint over the past 10 days, according to Kpler.

The price increase is already being felt in consumer fuel costs. Al Jazeera reported that average US petrol prices rose to $4.15 a gallon, while diesel prices reached record levels above $5.90 a gallon. The article said this could keep pressure on household budgets and broader prices, especially if supply disruptions continue.

More broadly, the piece placed the oil rally in the context of a wider conflict-driven market shock, with analysts warning that prolonged disruption could make any future de-escalation less effective in calming energy markets. It also said China has tried to reduce exposure by drawing on domestic supplies, reserves and alternative energy use.