Iran strikes oil prices higher after the United States opened a new round of attacks on Monday and Houthi blockade threats raised supply fears.
Brent and WTI both hit fresh one-month highs before giving back part of the move. However, both benchmarks firmed again later in the session. Traders weighed signs of mediation against a wider Gulf conflict and new risks to shipping routes.
The United States began its tenth straight night of strikes on Iran at 4 p.m. US Eastern time on Monday. US Central Command said the president ordered the attacks. It said the strikes aimed to weaken Iranian capabilities used to threaten commercial shipping through the Strait of Hormuz. Meanwhile, officials said in recent days that the administration may increase both the scope and pace of military action.
Iran Strikes Oil Prices Near Highs
The latest attacks came as Yemen’s Iran-aligned Houthi movement said it would impose a naval blockade on Saudi Arabia. As a result, traders faced a new risk to energy supplies and shipping beyond the Gulf. The Saudi-led coalition said it would answer the threat with force. Additionally, it confirmed extra safety steps for vessels using the Bab el Mandeb Strait.
Oil prices moved sharply through the session. Brent neared $91 a barrel, while WTI approached $85 after the Sunday evening US open. Later, prices pulled back after Iranian officials said mediators had proposed about a 10-day pause in strikes. The pause aimed to help revive an interim deal reached with Washington last month. Iran’s foreign ministry said it would stay in talks and that intermediaries had sent messages to Tehran in recent days.
Shipping Risks Add Fresh Pressure
That relief did not last. Renewed comments from Washington and the Houthi blockade threat pushed prices back up by the close. Brent settled around $89 a barrel, up about 1.3%. WTI finished near $82.50, up roughly 1%.
Iran’s Revolutionary Guards also said two oil tankers had been immobilised in the strait after trying what it called an unsafe southern route. However, it was not clear if that incident was tied to a separate attack on two vessels managed by a Greek shipping firm off Oman.
Shipping data showed Hormuz traffic slowed sharply, with transits at about half the previous day’s level. One geopolitical risk analyst said about 2.5 million barrels a day of Saudi output now faces Houthi risk. Meanwhile, other analysts said more than 1.3 billion barrels of crude at sea could limit further gains even if tensions rise.
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Source: InvestingLive
