Oil News: Tanker Hit in Hormuz Puts Brent Above $90 as U.S.-Iran War Risk Escalates Again

• Brent settled up 2.71% at $90.49 on Monday and reached $91.52, while WTI rose 2.83% to $85.76 following direct U.S. strikes on Iranian positions at Larak Island and Iran's retaliatory missile attacks on U.S. bases in Jordan
• Vessel traffic through the Strait of Hormuz has collapsed from roughly 100 ships per day pre-conflict to just five currently, with a tanker hit by three projectiles on Tuesday highlighting ongoing supply disruption risks
• Venezuela energy deals with Chevron, GE Vernova, ONGC, Eni, and GeoPark cannot provide near-term relief as projects require years to develop, while the U.S. Strategic Petroleum Reserve sits near a 44-year low at 286.6 million barrels

Market Summary: Oil Prices Surge Above $90 on Heightened U.S.-Iran Conflict

Key Developments

Oil prices surged sharply as escalating military tensions in the Strait of Hormuz revived war premiums. Brent crude climbed above $90 per barrel, reaching $91.05 (up 0.6%), while WTI crude rose to $86.59 (up 1.0%) as of 00:44 GMT on Tuesday. On Monday, Brent settled at $90.49 (up 2.71%) after hitting $91.52, and WTI closed at $85.76 (up 2.83%).

Critical Supply Disruption

Traffic through the Strait of Hormuz—which previously handled approximately one-fifth of global oil supplies—has collapsed to just five vessels daily, down from nearly 100 before the conflict began in late February. A tanker was struck by three projectiles while exiting the Strait on Tuesday, though no casualties or environmental damage were reported.

Military Escalation

The U.S. struck Iranian positions on Larak Island over the weekend, prompting Iranian missile attacks on two U.S. bases in Jordan. President Trump threatened additional strikes, reversing last week's selloff when traders had been removing war premiums from prices.

Technical Outlook

Analysts project Brent could test resistance levels at $92.98 and $95.82 if it breaks above $91.52. WTI targets range from $87.69 to $88.07. Market consensus expects oil to remain above $80 per barrel through 2026.

Alternative Supply Constraints

While Venezuela represents a potential supply alternative—with Chevron, GE Vernova, India's ONGC, Italy's Eni, and Colombia's GeoPark negotiating energy projects—Venezuelan barrels remain months away from production. Meanwhile, the U.S. Strategic Petroleum Reserve fell to 286.6 million barrels, near a 44-year low.

Negotiations to reopen the Strait have stalled despite mediation efforts from Qatar and Oman.