Oil prices extended gains on Monday as renewed attacks by the US and Iran on vessels increased concerns about prolonged disruptions to Middle East oil supplies. Brent crude rose 52 cents, or 0.54%, to $96.80 a barrel, while US West Texas Intermediate (WTI) gained 66 cents, or 0.72%, to $92.14.

Strait of Hormuz faces growing pressure

The latest increase follows a sharp rise last week, when Brent gained 7.8% and WTI almost 10%. The gains came as fighting reduced oil flows through the Strait of Hormuz, a key energy route that previously carried about one-fifth of global oil supplies.

The US Central Command said American forces struck three Iranian oil tankers on Saturday, including one near Kharg Island, an important Iranian oil export hub. Iran's Islamic Revolutionary Guard Corps said its navy also targeted three oil tankers using unauthorised routes and three additional US vessels.

Hormuz shipping falls to lowest level

Shipping activity through the Strait of Hormuz has also declined sharply. Data cited by Reuters showed that an average of only 10 commodity ships crossed the waterway daily over the past 10 days, the lowest level since May.

Iran is also expected to announce a restricted zone outside the strait, adding to concerns over global energy supplies. Meanwhile, OPEC+ has kept its October production policy unchanged.

Analysts warn that continued US-Iran tensions could keep Middle East oil exports restricted through the end of 2026, with a return to pre-conflict levels potentially delayed until early 2027.