Oil prices rise again in global market, Brent crosses $90

Prices of crude oil rose again in the global market on Monday (July 20) amid intensifying US-Iran conflict in the Middle East and fears of disruption to oil transport through the Strait of Hormuz. Brent crude surpassed $90 a barrel.

At 8:41am Bangladesh time, September-delivery Brent crude rose $2.09, or 2.37 per cent, to $90.19 a barrel. It was the highest since June 11.

During the same period, US benchmark West Texas Intermediate (WTI) crude rose $1.71, or 2.7 per cent, to $84.20 a barrel, the highest since June 12.

Last week also saw a major jump in oil prices. Brent crude rose 15.9 per cent and WTI rose 15.5 per cent in a week, the biggest weekly increase since April and March.

According to market analysts, fresh escalation of the US-Iran conflict has raised concerns over oil supply. Instability in the Strait of Hormuz, one of the world's most important oil transport routes, has become a key factor behind the price hike.

Analyst firm ING said there are no signs yet of de-escalation in the Gulf region. Uncertainty therefore persists in the market, and a prolonged conflict could create fresh upward pressure on oil prices.

Both sides have suffered casualties in the ongoing tit-for-tat strikes between the US and Iran. Meanwhile, US allies Kuwait and Bahrain have also claimed to be facing new Iranian attacks. Analysts fear a larger conflict across the Middle East.