Global oil prices spike near $97 amid Hormuz transit disruptions

Global oil prices continued their upward trajectory on Monday, approaching $97 per barrel due to rising geopolitical tension between the US and Iran and severe shipping disruptions in the Strait of Hormuz.

A Gulf News report on Monday (September 7) confirmed that Brent crude, the global benchmark, moved close to $97 per barrel during morning trade.

Brent crude rose by 0.43 per cent to $96.69 per barrel, while US West Texas Intermediate (WTI) crude gained 0.60 per cent to reach $92.03 per barrel.

Conversely, Murban crude fell by 1.36 per cent to $103.30 per barrel, and natural gas declined by 1.5 per cent to $2.929 per MMBtu.

Last week recorded the highest weekly gains since July, with Brent surging 7.6 per cent to $96.28 and WTI jumping nearly 10 per cent to $91.48 per barrel. Market analysts noted that supply uncertainty in international markets continues to add a geopolitical risk premium to oil prices.

Tanker movements through the Strait of Hormuz, a key route for global oil supplies, face severe uncertainty. Reuters reported that only four ships crossed the strait during a specific period, significantly down from the 10-day average of 13 vessels per day, though US officials claimed up to 17 million barrels were transported in a single day.

Facing Middle East supply risks, Brent crude is currently trading at a premium of about $4.66 per barrel over WTI, with analysts warning that the price gap could widen further if conflicts escalate or energy infrastructure is damaged.