(RTTNews) – Oil prices rose on Monday as U.S. attacks on Iranian tankers and Tehran’s threat of a new restricted zone outside the Strait of Hormuz raised concerns about prolonged disruption to Middle East energy supplies.
Brent crude futures rose half a percent to $96.70 a barrel, extending last week’s gains after U.S.-Iran attacks pushed Hormuz traffic to its lowest since May. WTI crude futures were up 0.1 percent at $91.55.
The U.S. military targeted three Iranian oil tankers over the weekend after ballistic missiles were launched towards two of its warships patrolling regional waters.
In retaliation, Iran said that its forces attacked a U.S. naval drone trying to enter the Strait of Hormuz.
Hours earlier, Iran’s Revolutionary Guard Corps warned ships not to attempt to transit on approved routes after targeting “three oil tankers on the unauthorized route of the Strait of Hormuz and three vessels affiliated with the child-killing America in other areas.”
Iran’s top security official has announced that a new restricted zone would be established outside the Strait of Hormuz in the coming days, adding to uncertainty around the future of energy shipments through the strategic waterway.
According to the Press TV, the proposed area would begin at the U.S. Navy blockade line and extend into parts of the Persian Gulf.
U.S. Secretary of Energy Chris Wright cautioned that the Trump administration may never reach a deal intended to prevent Iran from obtaining a nuclear weapon and that Iran’s capabilities could instead be destroyed.
Amid Iran war disruption to oil exports, the OPEC+ grouping of major oil producers said it would keep its output policy unchanged for October.
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