Oil Prices Rise as Strait of Hormuz Shipping Collapses Due to Iranian Attacks

TLDR

• Brent crude rose 0.9% to $89.28 a barrel on Monday after gaining over 5% last week
• Iranian attacks on tankers have nearly shut down Strait of Hormuz shipping traffic
• Only five vessels passed through the strait on Saturday, down from 130+ per day before the conflict
• Iran and Oman are in talks over managing the strait, but the U.S. is not part of those discussions
• Both OPEC and the IEA cut their 2026 oil demand forecasts last week

Oil prices pushed higher on Monday, continuing a strong run fueled by fears over Middle East tensions and disruptions to one of the world’s most important shipping routes.

Brent crude futures rose 0.9% to $89.28 a barrel in early trading. U.S. West Texas Intermediate crude added 0.2% to $82.60 a barrel.

Brent surged more than 5% last week. The main driver was the ongoing conflict between the U.S. and Iran, which has caused major disruptions to oil and gas shipping.

Strait of Hormuz Nearly Closed to Tankers

The Strait of Hormuz, through which more than 130 ships passed daily before the conflict, has seen traffic fall sharply. Iranian attacks on tankers trying to cross the strait have scared off shipping.

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