Oil prices surged past $90 a barrel on Monday as tensions between the US and Iran escalated.

Over the past weekend, the conflict between the United States and Iran escalated further, and oil prices rose by as much as 4% in early trading on Monday (July 20), breaking through $90 per barrel and reaching a new high since mid-June.

As of 11:30 a.m., Brent crude futures rose 2.3% to $90.13 per barrel, while West Texas Intermediate crude was trading at $84.20 per barrel.

The Iranian navy intercepted four ships attempting to pass through the "unsafe passage" in the Strait of Hormuz on Sunday (19th); an oil facility in Kuwait was also attacked over the weekend and suffered serious damage.

Iran says the ceasefire agreement with the United States has effectively broken down, and energy transport through the Strait of Hormuz may suffer even more serious disruptions.

Saul Kavonic, senior energy analyst at MST Marquee, believes the current situation indicates a risk of further escalation and prolonged conflict. If the Houthi rebels in Yemen also begin attacking oil infrastructure in the region or successfully disrupt shipping on the Red Sea, oil prices will rise rapidly.

The market is also concerned about global crude oil supply. JPMorgan data shows that, excluding China, global crude oil inventories have fallen to historic lows, leaving the market with "almost no room for error."

In addition, the U.S. has reinstated its blockade of the Strait of Hormuz, and Iran's continued attacks on ships near the strait are also affecting shipping via "shuttle run".

U.S. Energy Secretary Chris Wright said that the number of ships passing through the Strait has decreased, but large oil tankers are still passing through.

Source: [Lianhe Zaobao] (https://www.zaobao.com/finance/world/story20260720-9389502)