Crude Breaches $97 Mark As US, Iran Attack Each Other's Assets

Oil prices gained in early Asian trading on Monday as renewed tensions between the US and Iran increased concerns over possible disruptions to global energy supplies.

West Texas Intermediate (WTI) crude was trading above $92 a barrel, while Brent crude rose close to $97 a barrel following another weekend of military escalation between the two countries.

US strikes Iranian tankers, Iran warns of retaliation

The latest rise in oil prices followed a US military strike on three Iranian oil tankers. The US Central Command said the action was carried out after Iran’s Islamic Revolutionary Guard Corps targeted two US naval vessels with ballistic missiles.

The tankers targeted by US forces included M/T Downy, M/T Stark 1 and M/T Kylo. US officials said the strikes were intended as an economic response to attacks on American assets.

The US military also updated details of its naval blockade operations against Iran, saying forces had redirected 92 commercial vessels, disabled three ships and boarded two since the blockade resumed in July.

Iranian officials responded by warning that future retaliation would be stronger. Iranian Parliament Speaker Mohammad Bagher Qalibaf said the country’s response would be faster and more severe, while officials indicated that additional restrictions around the Strait of Hormuz could be announced.

Uncertainty over Strait of Hormuz oil flows

The situation has created uncertainty over the volume of crude oil currently moving through the Strait of Hormuz, a key global energy route.

US officials have claimed that millions of barrels of oil continue to move through maritime routes and pipelines, while Iran has maintained that the waterway is effectively closed.

Independent shipping data suggests actual flows are somewhere between both claims, with tracking becoming increasingly difficult as more vessels switch off identification systems.

Despite uncertainty over supply levels, analysts said the economic pressure campaign against Iran appears to be affecting the country. However, it remains unclear whether the pressure will push Tehran towards negotiations or lead to further military escalation.

With geopolitical risks increasing, oil markets are expected to remain volatile as traders closely monitor developments around the Strait of Hormuz and the broader US-Iran conflict.