Brent crude above $90 as US-Iran strikes disrupt shipping

Oil prices surged on Monday, July 20, with the global benchmark Brent crude surpassing $90 a barrel for the first time since mid-June, as escalating military strikes between the United States and Iran disrupted critical shipping lanes in the Middle East. Brent futures climbed more than 3% to trade near $90.79, extending a rally that saw prices gain roughly 15% last week.

The price spike follows a ninth consecutive night of U.S. airstrikes against Iranian targets, while Iran and its allies have conducted retaliatory attacks. The conflict has increasingly targeted maritime traffic and energy infrastructure around the Strait of Hormuz, a narrow waterway that handles about one-fifth of the world's seaborne oil trade. The United Kingdom Maritime Trade Operations agency reported a vessel on fire northwest of Oman's Kumzar early Monday, underscoring the risks to shipping.

Iran's navy stated it intercepted four unidentified vessels attempting to use an "unsafe route" through the strait on Sunday, claiming two were disabled and two turned back. Concurrently, the U.S. has resumed efforts to restrict movement, effectively blockading Iranian ports. Shipping data indicates a sharp decline in...