Brent crude oil rose above $90 a barrel on Monday as tensions escalated in the Middle East. US forces struck two Iranian rocket launchers on Larak Island, marking a resumption of hostilities between the US and Iran after roughly a month-long pause. President Trump was reported as saying, “We’re going to hit them very hard,” following Iran’s claim that it had attacked two US bases in Jordan in retaliation. Trump also directed fresh military threats at Kharg Island, Iran’s main oil export terminal.
Recent strikes on refineries in both the Middle East and Russia have further constrained global refining capacity, driving refined-product margins to new highs. At the same time, the US Strategic Petroleum Reserve has been drawn down close to its minimum operational level amid rising crude exports.
Adding to supply concerns, a supertanker caught fire after striking two naval mines in the southern Strait of Hormuz, according to Iranian state media. Asian importers—including China, Japan and South Korea—have turned to distant suppliers such as Argentina to offset lost barrels from the Middle East.