Global oil prices surged above $90 a barrel on Monday after renewed military escalation between the United States and Iran heightened concerns over potential disruptions to oil shipments through the Strait of Hormuz.
Brent crude briefly climbed more than 3 percent to $90.87 per barrel, its highest level in over a month, while US West Texas Intermediate (WTI) crude rose to around $84.84 per barrel. Both benchmarks have gained more than 15 percent during the past week, marking their strongest weekly rally in months.
The latest spike followed a ninth consecutive night of US strikes on Iran, coupled with renewed hostilities around the Strait of Hormuz, a critical shipping route that carries nearly one-fifth of the world’s oil supplies.
Growing fears of supply disruptions have prompted traders to push oil prices higher as tanker traffic through the strategic waterway remains below normal levels.
Barclays warned that global crude inventories are already at their lowest level in five years, leaving the market increasingly exposed to any further supply shocks.
The sharp rise in international oil prices could create fresh challenges for oil-importing countries such as Pakistan. Higher crude prices typically increase the country’s import bill, raise domestic fuel costs, and add to inflationary pressures across the economy.
