FX.co ★ Brent Fluctuates as US and Iran Exchange Fire

Brent crude traded above $96 a barrel on Monday, extending last week’s 9.3% surge, as escalating tensions between Washington and Tehran stoked fears of prolonged disruptions to oil shipments through the Strait of Hormuz.

The United States said it had struck three Iranian oil tankers over the weekend, destroying one, in response to ballistic missile attacks on US Navy warships. In turn, Iran threatened to establish a new restricted zone outside the strait, reportedly stretching from the US Navy blockade line into parts of the Persian Gulf. Tehran also claimed to have targeted three tankers, though these reports could not be independently verified.

US Energy Secretary Chris Wright said Washington would maintain its naval presence and blockade, designed to curb Iranian oil exports while safeguarding the passage of commercial shipping. Wright previously noted that millions of barrels of crude continued to transit the Strait of Hormuz despite the worsening conflict.