Oil prices surge toward $97 on US-Iran Strait of Hormuz conflict

Global crude benchmarks climbed on Monday as fresh strikes between the United States and Iran against vessels near the Strait of Hormuz amplified fears of protracted Middle Eastern supply shocks. 

Brent crude futures rose to $96.80 a barrel, while U.S. West Texas Intermediate (WTI) climbed to $92.14, extending sharp gains after advancing 7.8% and nearly 10% respectively last week. Escalating security risks have sharply curtailed transit through the chokepoint, which previously handled roughly one-fifth of global oil shipments, sustaining a heavy geopolitical risk premium.

Russian Urals crude traded at roughly $66.54 per barrel according to prevailing spot indicators, with realized pricing continuing to vary widely based on delivery terms and export destinations.

N.Tebrizli