Global oil prices near $97

Global oil prices continued to rise on Monday (September 7) as escalating US-Iran tensions and severe disruptions to shipping through the Strait of Hormuz heightened concerns over crude supply.

Brent crude, the global benchmark, rose 0.43 percent to $96.69 a barrel by around 8:30am, while US West Texas Intermediate (WTI) gained 0.60 per cent to $92.03.

Market analysts said the uncertainty over Middle Eastern supplies was keeping a geopolitical risk premium in oil prices. Brent was trading about $4.66 a barrel above WTI, reflecting heightened concerns over disruptions in the region.

The price gap could widen further if the conflict escalates or key energy infrastructure is damaged, analysts said.

Oil prices posted one of their sharpest weekly gains in recent memory last week, with Brent jumping 7.6 per cent to $96.28 a barrel and WTI surging nearly 10 per cent to $91.48—their highest levels since July.

Other energy markets moved in the opposite direction on Monday. Murban crude fell 1.36 percent to $103.30 a barrel, while natural gas declined 1.5 per cent to $2.929.

The latest surge in oil prices is largely linked to uncertainty over tanker traffic through the Strait of Hormuz, a critical route for global energy supplies.

Recent reports indicated that only four vessels crossed the waterway, compared with an average of at least 13 a day over the previous 10 days.

US officials, however, said as much as 17 million barrels of oil were transported through the strait in a single day despite the disruptions.