US Oil Update: Oil Gains After Middle East Hostilities Flare Up Again
Crude oil benchmarks surged on Monday rising more than 3% following military escalation between US and Iran over the weekend sparking supply concerns. Brent crude futures rose 3.6% to $78.72 per barrel, while West Texas Intermediate crude futures gained 3.4% to $73.88/bbl. "Oil prices jumped, with Brent trading near [$]80 per barrel, after the battle for control over the Strait of Hormuz escalated over the weekend," Saxo Bank analysts noted. This price jump follows a rapid deterioration in regional security after a massive wave of US strikes on Iranian targets on Sunday prompted retaliatory Iranian attacks against US military installations in Kuwait, Bahrain, and beyond. The standoff has created a wait-and-see environment for energy traders, analysts noted. "Escalation has slowed vessels transiting the strait to a trickle, renewing concerns over oil supply tightness through the third quarter," ING analysts said. On the demand side, OPEC on Monday lowered its global oil demand growth forecasts for the third straight month for 2026, projecting demand to grow by 800,000 barrels per day year-on-year in 2026.
Crude oil benchmarks surged on Monday rising more than 3% following military escalation between US and Iran over the weekend sparking supply concerns.
Brent crude futures rose 3.6% to $78.72 per barrel, while West Texas Intermediate crude futures gained 3.4% to $73.88/bbl. "Oil prices jumped, with Brent trading near [$]80 per barrel, after the battle for control over the Strait of Hormuz escalated over the weekend," Saxo Bank analysts noted.
This price jump follows a rapid deterioration in regional security after a massive wave of US strikes on Iranian targets on Sunday prompted retaliatory Iranian attacks against US military installations in Kuwait, Bahrain, and beyond.
The standoff has created a wait-and-see environment for energy traders, analysts noted. "Escalation has slowed vessels transiting the strait to a trickle, renewing concerns over oil supply tightness through the third quarter," ING analysts said.
On the demand side, OPEC on Monday lowered its global oil demand growth forecasts for the third straight month for 2026, projecting demand to grow by 800,000 barrels per day year-on-year in 2026.