Brent crude climbed to $97.5 per barrel on Monday, a six-week high and nearly 40% above its pre-war level in Iran, reflecting expectations of a prolonged period of tight supply. Iran indicated it was close to securing an agreement with Oman on a tanker route through the Strait of Hormuz. Persistent hawkish rhetoric from the United States regarding the corridor has heightened escalation risks, as Washington and Tehran continue to target each other’s military and commercial vessels.
U.S. Energy Secretary Chris Wright said Washington would maintain its naval presence and the blockade. A sharper rebound in crude prices was curbed, however, as major economies tapped strategic inventories to offset higher import costs. U.S. Strategic Petroleum Reserve (SPR) stocks fell to below 290 million barrels, their lowest level since 1982.
In addition, China sharply reduced crude oil imports, and domestic refinery runs were cut by only 1.6 million barrels per day, signaling a decline in crude consumption despite stable demand for refined products.
