Oil prices rose on Monday as investor focus returned to threats facing Middle East oil facilities, despite U.S. President Donald Trump’s call for nations to help safeguard the Strait of Hormuz, a vital artery for global energy shipments.
Brent crude futures climbed $1.27, or 1.2%, to $104.41 a barrel by 0400 GMT, after settling up $2.68 on Friday. U.S. West Texas Intermediate crude gained 54 cents, or 0.6%, at $99.25 a barrel, after settling up nearly $3 in the previous session.
While the strikes appear to have targeted military, rather than energy, infrastructure, they still pose supply risks since Iranian oil is about the only oil moving through the Strait of Hormuz for now, ING added.
Over the weekend, Trump threatened further strikes on Iran’s Kharg Island, which handles about 90% of its exports, after hitting military targets there, to spur a defiant response of more retaliation from Tehran.
Iranian drones hit a key oil terminal in Fujairah in the United Arab Emirates shortly after the Kharg attacks.
