Oil prices moved higher on Monday as investor attention shifted back to threats facing energy export facilities in the Middle East, despite U.S. President Donald Trump’s call for international cooperation to protect the Strait of Hormuz, one of the world’s most important oil shipping routes.
Brent crude futures rose $2.73, or 2.7%, to $105.87 per barrel by 07:30 GMT after gaining $2.68 in Friday’s session. U.S. West Texas Intermediate crude climbed $1.65, or 1.7%, to $100.36 per barrel following a near-$3 advance in the previous trading day.
Both benchmarks have rallied more than 40% this month, reaching their highest levels since 2022. The surge followed U.S.-Israeli strikes on Iran, which prompted Tehran to suspend shipping through the Strait of Hormuz—cutting off roughly one-fifth of global oil supply in what has become the largest disruption on record.
“U.S. strikes over the weekend on Kharg Island raised supply concerns, as most of Iran’s oil exports pass through it,” ING commodity strategists said on Monday.
Although the strikes appear to have targeted military installations rather than oil infrastructure, ING noted that supply risks remain elevated because Iranian crude is currently among the few shipments still moving through the Strait of Hormuz.
Over the weekend, Trump warned that additional attacks on Iran’s Kharg Island could follow. The island, which handles around 90% of Iran’s oil exports, had already been targeted in strikes on military sites, prompting Tehran to issue fresh threats of retaliation.
Shortly after the attacks on Kharg, Iranian drones struck a key oil terminal in Fujairah in the United Arab Emirates. According to four sources, oil loading operations at Fujairah have resumed, although it remains uncertain whether activity has fully returned to normal.
Located outside the Strait of Hormuz, Fujairah serves as the export outlet for roughly 1 million barrels per day of the UAE’s flagship Murban crude—equivalent to about 1% of global oil demand.
“The U.S. is weighing high-risk ground options, including raiding nuclear sites for Iran’s enriched uranium, seizing the Kharg Island oil hub, and occupying southern Iran to protect the Strait of Hormuz,” SEB analyst Erik Meyersson said in a note.
“All of these imply significant escalation and require a tolerance for substantially higher risk.”
On Sunday, Trump said Washington was urging other countries to help secure the strategic maritime corridor and noted that discussions with several governments were already underway regarding potential patrol efforts.
He also said the United States remains in contact with Iran, but questioned whether Tehran is prepared to engage in serious negotiations aimed at ending the conflict.
Meanwhile, the International Energy Agency announced on Sunday that more than 400 million barrels of crude from strategic reserves would soon be released to the market—a record draw intended to offset price spikes caused by the Middle East conflict.
According to the agency, stocks held in Asia and Oceania will be deployed immediately, while supplies from Europe and the Americas are expected to reach the market by the end of March.
“As the conflict enters its third week, the lack of a clear denouement has left global markets increasingly worried about an uncontrollable escalatory spiral,” SEB’s Meyersson said.
Still, U.S. Energy Secretary Chris Wright said on Sunday he expected the conflict to end within “the next few weeks,” after which oil supply should recover and energy prices could ease.
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