Brent crude rose above $90 per barrel on Monday as renewed tensions around the Strait of Hormuz intensified following Iran’s claim that a supertanker caught fire after striking two naval mines while attempting to cross the strategic waterway.
As of 4:00 p.m. West Africa Time, Brent crude was trading at $90.50 per barrel, up 2.72%, while West Texas Intermediate stood at $85.40 per barrel, representing a 2.40% increase.
The reported tanker incident has added to concerns over the safety of vessels operating through the Strait, a critical route for global energy shipments. Iranian state media, citing the Islamic Revolutionary Guard Corps, said the vessel had entered the waterway in violation of Iranian security requirements.
The IRGC did not disclose the name of the tanker or provide details about its crew. It said vessels using the Strait are required to comply with Iranian regulations and warned that ships attempting to disregard those requirements could face similar consequences.
According to the Iranian account, the tanker was travelling through the southern lane of the Strait near Oman when it struck two naval mines and caught fire. Tehran has said the northern corridor is under its control, while some vessels have reportedly used the southern route to avoid Iranian restrictions.
The claim emerged shortly after the United States carried out a military strike on two Iranian rocket launchers on Larak Island, which is located within the Strait of Hormuz.
The US Central Command said the operation followed observations that Iranian Revolutionary Guard forces were preparing to launch rockets carrying sea mines into the waterway. CENTCOM characterised the strike as a limited action against what it considered an imminent maritime threat.
The sequence of events has heightened uncertainty for shipping operators, with renewed military activity potentially increasing the risks associated with moving crude and petroleum products through the Strait.
A prolonged escalation could affect tanker movements by prompting vessels to avoid the area, alter their routes or face higher insurance and transportation costs. Such developments could place additional pressure on crude prices if concerns over physical supply disruptions intensify.
The oil market has already responded to the latest security developments. Brent’s move above $90 marks a return to a level closely watched by traders because of the Strait’s importance to international energy flows, while WTI has also moved firmly above $85.
The reported mine incident also raises concerns beyond the immediate safety of the vessel involved. Any further attempts to restrict or disrupt maritime traffic could affect the movement of crude from Persian Gulf producers to international markets.
The Strait of Hormuz remains particularly sensitive to geopolitical disruptions because of the volume of energy cargoes that normally pass through the waterway. Renewed military activity in and around the passage therefore carries the potential to influence both shipping decisions and market pricing.
Iran’s claim about the tanker fire has not identified the vessel or provided independent details establishing the circumstances of the incident. Further information will be required to determine the extent of the damage and whether the incident will lead to wider restrictions on tanker traffic.
For now, the combination of the reported mine strike, the US military action and the resulting concerns over maritime security has placed fresh attention on the Strait of Hormuz, while crude prices have responded with gains of more than 2%.