WTI crude futures briefly surged to $102.40 per barrel on Monday before paring gains, after US forces struck military assets on Kharg Island over the weekend as the Middle East conflict entered its third week. US President Donald Trump warned that Iran’s energy infrastructure on the island—which handles roughly 90% of the country’s oil exports—could be targeted if Tehran disrupts transit through the Strait of Hormuz.
The narrow waterway, which connects the Persian Gulf to global markets, has been effectively closed since the conflict began, with Iran’s new supreme leader vowing last week to keep the strait shut if hostilities persist. At the same time, traders weighed reports that Washington is poised to unveil a multinational coalition to escort commercial vessels through the area.
Underscoring the strain on global supply, the IEA said on Sunday that crude from last week’s record 400-million-barrel strategic reserve release will be made available to Asian buyers immediately.
