Crude Oil Prices Rise Nearly 3% Amidst US-Iran Tensions in Strait of Hormuz

Kathmandu. Due to the increasing tension between America and Iran in West Asia, oil transportation through the Strait of Hormuz has been affected, causing crude oil prices to rise by approximately 3% in the international market on Monday. With this, the price of Brent crude oil has gone above $90 per barrel. On Monday morning, the price of Brent crude futures increased by $2.77, or 3.14 percent, to $90.87. This is the highest price since June 11. With a 15.9 percent increase last week, this became the biggest weekly increase since April. Similarly, the price of American West Texas Intermediate (WTI) crude also increased by $2.35, or 2.85 percent, to $84.84 per barrel. This is the highest point since June 12. Last week, its price increased by 15.5 percent, which is the biggest weekly increase since the beginning of March. Over the weekend, America continued its ninth consecutive night of attacks against Iran, while US allied nations Kuwait and Bahrain have reported further Iranian attacks. In a commentary on Monday, ANG analysts said, 'With no signs of tension in the Gulf easing, ICE Brent has surpassed $90 a barrel this morning.' They added, 'America and Iran continue to attack each other, which is proving fatal for both sides. If this tension is not controlled, we may return to an environment of widespread attacks across the Gulf region.' The Islamic Revolutionary Guard Corps stated on Monday that two oil tankers exploded and their movement was halted. Iran alleges that the tankers were damaged while attempting to use the unsafe southern route of the Strait of Hormuz and that the US military incited them to use that route. In recent days, both sides have been targeting maritime commercial vessels. America has stated that it is enforcing a maritime blockade on Iranian ports, while Iran claims it is targeting ships that violate its rules in the Strait of Hormuz, through which a quarter of the world's oil trade passes. According to the United Kingdom Maritime Trade Operations center, a ship caught fire northwest of Khasab, Oman on Monday morning. According to LSEG data, while eight ships crossed the Strait of Hormuz the previous day, only four ships crossed on Sunday. According to data, at least three oil production tankers and one large crude oil carrier have entered the waterway to load oil since Friday.