Global oil prices have surged to near six-week highs as the escalating conflict between the United States and Iran continues to disrupt shipping through the Strait of Hormuz.
Brent crude rose to around $97 per barrel on Monday, while U.S. West Texas Intermediate crude climbed above $92. The increase comes as attacks on vessels and growing security concerns reduce the flow of oil through the strategically important waterway.
The Strait of Hormuz is one of the world’s most important energy routes, making the disruption a major concern for governments, businesses and consumers around the world.
Reuters reports that the average number of tanker vessels passing through the strait has fallen to around 10 per day, the lowest level recorded since May. Further escalation could push oil prices significantly higher, with analysts warning that crude could reach $120 per barrel if the situation worsens.
The United Arab Emirates has also begun developing alternative routes for energy exports and trade, with officials saying the country will not allow its energy supplies to be held hostage by the conflict.
Iran, meanwhile, has warned that it could introduce a new restricted zone in the Persian Gulf and issue updated shipping corridors around the Strait of Hormuz. Tehran has also threatened to retaliate against American energy infrastructure if further attacks occur.
The continuing disruption has increased fears of higher fuel and transportation costs globally, while governments and energy companies closely monitor developments in the region.
