SINGAPORE: Oil prices jumped about 3 percent on Monday, with Brent oil prices surpassing $90 per barrel, as escalating US-Iran hostilities in the Middle East restricted oil shipments through the Strait of Hormuz.
Brent crude futures climbed $2.77, or 3.14 percent, to $90.87 by 09:12 a.m. Saudi time, touching the highest since June 11, extending gains after rising 15.9 percent last week, its biggest weekly gain since April.
US West Texas Intermediate crude was at $84.84 a barrel, up $2.35, or 2.85 percent, the loftiest since June 12. Front-month prices gained 15.5 percent last week, the largest weekly ascent since early March.
The Middle East conflict escalated over the weekend with the US conducting a ninth straight night of attacks against Iran, while US allies Kuwait and Bahrain reported more Iranian strikes.
“ICE Brent broke above $90 per barrel this morning with no let-up in the escalation in the Gulf,” said ING analysts in a note on Monday.
