Oil prices continued to rise on Monday, with Brent crude approaching a record monthly increase, following attacks by Yemeni Houthis on Israel over the weekend, escalating the ongoing conflict in the Middle East involving the US and Iran.
By 09:33 GMT, Brent crude futures rose by $3.20, reaching $115.77 per barrel after a 4.2% increase on Friday, reported Reuters.
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Meanwhile, US West Texas Intermediate (WTI) increased by $1.86 to $101.51 per barrel following a gain of 5.5% in the preceding session.
US President Donald Trump stated that there have been both direct and indirect meetings with Iran, noting that the country’s new leadership has shown reasonableness.
Concurrently, more US troops have been deployed to the region, and the Israeli military confirmed strikes on Iranian infrastructure in Tehran.
The current escalation in conflict has led to Brent’s 60% rise this month, marking the most significant monthly jump since the 1990 Gulf War. This increase in prices was due to the effective closure of the Strait of Hormuz, a vital passage for global oil and gas shipping.
In response, Saudi Arabia has rerouted crude exports from the Strait of Hormuz to Yanbu port in the Red Sea, which recorded exports of 4.658 million barrels per day last week, as per Kpler’s data.
Over the weekend, attacks damaged Oman’s Salalah terminal amid attempts to initiate ceasefire talks.
Pakistan Foreign Minister Ishaq Dar highlighted discussions aimed at resolving the conflict and potential US-Iran talks in Islamabad.
Meanwhile, Vietnam’s Binh Son Refining and Petrochemical disclosed ongoing negotiations to purchase Russian crude oil while also planning acquisitions from Africa, the US, and Southeast Asia.
In related developments, two LPG tankers bound for India successfully navigated through the Strait of Hormuz despite disruptions caused by the conflict, Reuters reported.
They are scheduled to arrive at Mumbai and New Mangalore by March 31 and April 1, respectively.
The war has largely halted traffic through the strait, however, Tehran has allowed non-hostile vessels passage if coordinated with Iranian authorities.
According to LSEG ship tracking data, four Indian LPG tankers have completed crossings while three remain on route in the western section of the strait.
A total of 18 Indian-flagged vessels with 485 Indian seafarers are still located in the western Gulf.
