Oil Prices Hit $97 as U.S. and Iran Exchange Ship Strikes Near Strait of Hormuz

TLDR

• Brent crude rose above $97 a barrel Monday after U.S. and Iranian forces struck each other’s vessels in and around the Strait of Hormuz
• The U.S. military hit three Iranian oil tankers on Saturday; Iran responded by targeting U.S. Navy vessels and a naval drone
• About one fifth of global oil supply normally passes through the Strait of Hormuz, and tanker traffic has dropped to its lowest level since May
• Iran’s top security official said a new restricted maritime zone will be announced outside the Strait of Hormuz in the coming days
• OPEC+ held production steady for October, pausing six months of output increases as the group works on new 2027 quotas

Oil prices climbed sharply on Monday after the United States and Iran exchanged strikes on vessels in and around the Strait of Hormuz, raising fears of a longer-term disruption to global crude supplies.

Brent crude futures rose as high as $97.58 a barrel, up about 1.4% on the day. West Texas Intermediate gained 1.3% to around $92.69 a barrel. Both benchmarks had already risen sharply the previous week, with Brent up nearly 8% and WTI up close to 10%.

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