Oil prices rise in global markets

KABUL (Pajhwok): Oil prices rose in global markets on Monday, with escalating tensions between the United States and Iran and concerns over continued disruptions to oil supplies from the Middle East cited as factors behind the increase.

Reuters reported that by 05:12 GMT, Brent crude had risen by 79 cents, or 0.82 percent, to $97.07 per barrel.

US West Texas Intermediate (WTI) crude also increased by 80 cents, or 0.87 percent, to $92.28 per barrel, according to the report.

Brent crude prices rose by 7.8 percent last week, while US crude prices increased by nearly 10 percent, the report said.

The report added that renewed attacks between the United States and Iran had reduced oil shipments through the Strait of Hormuz, a waterway through which about one-fifth of the world’s oil supply had previously passed.

The US Central Command said its forces on Saturday targeted three Iranian oil tankers, including one near Khark Island, one of Iran’s key oil-export hubs.

In response, Iran’s Islamic Revolutionary Guard Corps Navy said it had targeted three oil tankers that, according to the force, were travelling through the Strait of Hormuz along unauthorised routes, as well as three other US vessels in other areas.

According to data from shipping analytics company Kpler, an average of 10 cargo-carrying vessels per day had passed through the Strait of Hormuz over the past 10 days, the lowest level since May.

Mohsen Rezaei, secretary of Iran’s Supreme National Security Council, also said that a restricted zone would be declared outside the Strait of Hormuz in the coming days.

Analysts at ANZ Bank said continued confrontation between the United States and Iran could delay the full restoration of normal oil supplies from the Middle East.