Oil prices are climbing again as a new US-Iran military escalation puts the world’s most critical oil shipping route back in the spotlight.

Brent crude futures climbed 2.85 percent to $90.61 a barrel and US West Texas Intermediate (WTI) rose 2.55 percent to $85.53 early Monday as markets reacted to fresh military strikes and growing uncertainty over the Strait of Hormuz.

US forces struck two launchers on Iran’s Larak Island in the Strait of Hormuz on Sunday, the first known American strikes on the Gulf nation since late July. Iranian media, citing the Islamic Revolutionary Guard Corps, said Tehran responded by striking two US air bases in Jordan.

The latest exchange has sparked fears the conflict could take another turn for the worse, possibly threatening energy supplies and pushing crude prices higher.

“It seems we are in another escalation phase,” IG market analyst Tony Sycamore said, warning it could take days or weeks.

Technical indicators are also pointing to the potential for more gains. For WTI, a sustained break above $85.80-$85.90 could pave the way for a move toward last week’s $87.69 high and possibly July’s $93.50 level.

The main worry is the Strait of Hormuz, where roughly a fifth of the world’s oil supplies went through before the fighting started. Efforts to reopen the waterway have stalled, and shipping activity has collapsed. Only five visible vessels carrying commodities crossed the strait over the weekend, a sign that shipping companies are becoming more cautious.

Adding to market pressure, the UK Maritime Trade Operations said a tanker was struck by a projectile while sailing inbound through the strait on Saturday.

Washington is likely to impose new secondary sanctions on Iran on a weekly basis, US Treasury Secretary Scott Bessent said, which could put more pressure on Tehran’s oil trade.

With talks stalled and shipping risks rising, markets are again closely watching the Strait of Hormuz. The big question now is whether this latest escalation will be temporary or become a much broader threat to global oil supplies.

Credit: Independent News Pakistan (INP)