Brent Crude Surpasses $90 After U.S. Strikes Iranian Launchers Near Strait of Hormuz

Brent crude futures surged past $90 a barrel on Monday after the U.S. military conducted a strike against Iranian rocket launchers near the Strait of Hormuz, reigniting concerns over the security of a vital global oil transit route.

U.S. Confirms Military Action

The strike broke a period of relative calm in the region. U.S. Central Command spokesman Capt. Tim Hawkins reported that American forces carried out a military strike on Sunday against Iranian rocket launchers that were preparing to lay mines in the waterway. The action highlights the persistent fragility of the key shipping channel after months of regional conflict.

Following the news, international oil benchmarks rose sharply. Key price movements include:

• Brent crude for November delivery rose above $90 a barrel.
• West Texas Intermediate (WTI) crude futures climbed, approaching $86 a barrel.

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Trading volume in Brent futures may be lower than average on Monday due to a public holiday in parts of the United Kingdom, according to the source material.

Market Volatility and Geopolitical Risk

The oil market has experienced significant volatility this month, with Brent futures seeing a monthly trading range of nearly $17 a barrel. Prices have been swayed by intermittent ceasefire attempts in the broader conflict, as well as by Washington's stated intentions to increase economic pressure on Tehran.

Despite the ongoing tensions, an estimated 6 million to 8 million barrels of crude oil continue to transit the Strait of Hormuz daily, according to traders who track freight shipments. Meanwhile, Iran's semi-official Mehr News Agency reported that "ship passage is being carried out to a limited extent" on approved routes, adding that vessels were being required to pay transit fees.